Debt Recovery Solutions.
There are many debt recovery solutions and it only takes a few minutes to decide which is best for you. Just gather all the information together and sit in a quiet room. Someone has to make a decision about collecting it – and it appears to be you. Once you have made your decision, it is them time to execute the process. Carpe diem.
Cost Versus Reward
This is often the stage that nonprofessional debt collectors simply omit. They look at the value of the debt and nothing else. There is a whole lot of “else” to be looking at in debt recovery solutions:
- Does the debtor have the ability to repay? Investigate their financial status.
- Is the debtor a can pay and will not pay? This is a professional nonpayer. They are difficult to get a result out of. Unless you know what you are doing.
- Is it worth investing your time trying to get this money back or focusing on making money?
- How long will a debt collector take you to get your money back?
- Do you simply want to spite the person or company?
- Has the debtor moved out of your jurisdiction?
- Could it be dangerous?
- Can you take your emotion of pursuing this debt? Anger rarely is successful.
- Could you prove the debt in court?
- Is the debt actually important to you?
If you omit the above considerations, you could end up choosing the wrong debt recovery solutions.
Not Worth Pursuing Debt Recovery
This does not mean that the debt has no value. It simply means that it not worth your time and expense to chase after a lost cause.
There are many companies out there who will purchase debt from you. Check the purchaser’s agreement documentation – receive what they believe it is worth. Move on.
Many of the debt purchase companies have been undertaking debt purchase for years and have tons of data. They will give you a realistic value of your debt. This may not be what you believe the debt to be worth – as you see it at face value. Generally, it is in single figure percentages. Work on 3% sale price to evaluate if you want to invest your time in researching this option. Assume 2 – 5 working days to complete research and offer. Time from start to completion 2 weeks – 3 months for a single debt.
Spiteful Debt Recovery Solutions
This should be done with considerable thought. It could involve costs that are literally money after bad.
- Write to people in your trade, neighbourhood, their customers etc.
- Revenge website
- Constant contact – not harassment.
Resolute collections does not offer this as one of their debt recovery solutions. However, by the nature of the services we offer, it incorporates these choices.
Outsourcing Debt Recovery
This is a global business with many players in the industry. Many will charge no fee no win. However, the amount retained in commission is likely to be 40%. On the face of it this is one of the most popular debt recovery solutions. Sadly (as we know from 40 years’ experience) the reporting is at best – dubious. We have an entire article and FAQs on this subject.
Where there is no upfront fee, the companies cherry pick. Launching a debt collection strategy against a debtor has costs. So, they pick the easiest cases to collect.
Unless you careful or lucky, most credit control departments will merely set upon a course of letters. Letters take time and the process is costly. Many credit managers think this is a recovery solution – it is not. Sending a letter merely gives someone legitimacy when they actually talk to the debtor.
Going to repeat ourselves, credit control are generally not the best debt recovery solutions. A strongly worded letter followed by another then another, does not impress a debtor. You can buy simple software to automate this.
If you have a Credit control department it can be expensive. Look for another recovery solution and have credit controllers do their job.
Resolute Collections Solution.
If you are looking for “unusual debt recovery solutions”, it could be Resolute Collections.
We have been collecting debt for over 40 years, working in large global organizations and on our own. We are the thinking man’s debt collector. Resolute Collectors are not credit control nor risk advisors – we are debt collectors. All we collect payments.
There is no “no upfront fee” option. Like you, we value our time.
UK’s Biggest Players
Moorcroft debt collection is definatley one of the biggest in the United Kingdon. However, constant monitoring is required with the big players.
Cabot Group is another magalith of UK collections if you need major debt collection in the UK or international debt collections.
Expect fees and commissions on th high side.
Do you have any comments or recomendations for debt recovery solutions
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