Factoring

Have you heard this line before when chasing for payment of an overdue account: "It's just that the two directors need to sign the cheque, and one of them is out of town for three weeks". As unfair as it may seem, some very large businesses do not pay their bills until they have to, as it can be a cheap way to get a loan from you. Typically late payment is not because your customers are insolvent.

For many businesses outstanding invoices are their largest asset. Overdue bills are a nuisance, expensive to collect on your own and a distraction from what you and your staff should be doing. A collection agency can efficiently help recover overdue debt for you. Once a third party is involved it is often the case that debtors pay faster.
The industry is very professional and large (over £3 billion turnover representing some 17 million claims are collected annually). Various groups of collection agencies exist:

• divisions of credit insurance and accounting and law firms
• divisions within most of the large credit information services 
• companies small to mid-sized independently owned companies
• and as services offered by individuals (only few of whom are responsible for the negative debt collection image)

Factoring is an alternative service, and depending on your needs, more comprehensive than debt collection.  Collection agencies need to be licensed by the Office of Fair Trading and are regulated under the Consumer Credit Act 1974 (and subsequent regulations). There are also strict laws disallowing harassment and other inappropriate means to collect overdue debts.  

CONTACT US by ringing  0207 407 8787 or email us using the form below.