Frequently Asked QuestionsCommercial Debt Collection FAQs
Commercial Debt Recovery
Frequently Asked Questions
Wondering is professional commercial debt collection is right for you? Read our FAQs, or get in touch with our friendly debt recovery team today!
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Whatever your commercial debt concerns, get in Touch with CEA Ltd’s friendly team today!
Commercial Debt Collection
If you’re looking for B2B debt recovery for unpaid invoices, CEA Limited is here for you!
How to Recover Unpaid Invoices?
Before you start to recover your unpaid invoices, you should always double-check all documentation and the timeline of events. Start with checking all the details of the invoice and payment agreement, including the invoice date and payment amounts. Make sure that both your, and your customers, details are correct. Use Companies House to correlate the data on your invoices with the official information of your commercial customer.
Once you’ve double, or even triple, checked everything, that’s when you call in a professional team. If you’re struggling to recover unpaid invoices, get in touch with CEA Limited today. We can guide you through the correct way of pursuing an unpaid invoice, including reminder emails and more. If you’re looking to recover late or unpaid commercial invoices, we are here for you.
What is a High Court Writ?
A High Court Writ is a powerful tool used by creditors to enforce debt repayment after obtaining a county court judgement. Otherwise known as a Writ of Control, a High Court Writ allows High Court Enforcement Officers (HCEO) to visit the debtor’s business premises. If the debtor cannot or refuses to pay the debt, the HCEO will be able to remove goods up to the value of the county court judgement, in addition to the HCEO costs.
How Much Does CEA’s Unpaid Invoice Debt Recovery Service Cost?
For B2B debts (including limited company, PLC and LLP debts), where there is no Court Judgement in place, we provide our services at a low fee, with commission paid on collection. As part of our invoice collection service, we add on legislated for late payment charges and interest to the debtor. This means we can provide commercial debt recovery and unpaid invoice collection to creditors at an extremely cost effective rate.
Are All Commercial Debts Worth Pursuing?
In a small number of cases, it can be worth simply letting the commercial debt go. Before you start the process of collecting on an unpaid invoice, it is always worth checking to see if the process is worth it. Disputed invoices can sometimes be extremely difficult to collect, so it’s always a better idea to resolve any genuine problems outside of the debt recovery system.
For larger debts, it is always worth investigating whether there are other reasons the other company might not have paid you. At CEA Limited, we will work to identify if the company in question is still trading, or whether they’ve encountered any kind of serious financial difficulties.
Where you have any smaller debt (less than £100, for example), it might be necessary and more cost-effective to write off the debt. This should never be done lightly, or automatically, however, as it could set a precedent for other customers or clients.
Will I Need to Provide Evidence of the Debt?
All our experienced team of debt collectors need to start pursuing your commercial debt is a copy of the unpaid invoices / statement of account. We will also find it helpful for you to forward any subsequent contact you’ve had with the debtor, a copy of your T&Cs and the details of your standard payment terms.
Is There a Time Limit on Commercial Debt Recovery?
It’s always a good idea to chase invoices as quickly as possible. This will maintain your cash flow, limit the negative impact of an unpaid debt on your business and send the right message to your customers and clients.
If you have any outstanding invoices, these can be collected on within six years of the invoice. In order to claim after so long, you’ll need to have maintained contact with the customer regarding the debt. This can include regular statements of account or payment reminders.
Can I Chase Any Kind of Debt?
Generally, any type of debt can be pursued. However, the likelihood of receiving any kind of payment will depend on your individual circumstances. To chase any kind of serious business debt, you need to have invoiced the Limited Company, PLC or Limited Liability Partnership (LLP).
If the invoice went to a sole trader or individual, there is a completely different process to pursuing commercial debt. If there are significant assets to be seized, then these invoices can still be worth pursuing. In most cases, you will need to go through the courts to recover any kind of individual debt. For more information on CEA Limited’s personal debt services, get in touch today!
What Happens If CEA Can’t Recover My Commercial Debt?
There are some instances when even chasing the commercial debt isn’t enough to recover the money you are owed. In those circumstances, our team of commercial debt collectors will discuss the next steps with you. For example, you may choose to start court proceedings against the guilty party. In some cases, you may be required to write off the debt.
What Makes CEA Different to Other Business Debt Recovery Companies?
Most debt collection agencies, including personal debt and commercial debt collection agencies, charge a commission on any debts they collect. They may claim to offer no-win, no-fee marketing, but there are stull huge costs to be paid when they do collect the invoice.
Here at CEA Ltd, all our commercial debt collection services are paid by the debtor. We will never charge you to collect on pre-judgement B2B debts (including invoices to Limited Companies, PLCs and Partnerships).
Remember, when companies say “No-Win, No-Fee”, that means if you do win, there are substantial fees to be paid. At CEA, we offer B2B business debt collection for no fee whatsoever. We collect our costs from the other party, so you never need to pay for your commercial debt collection services.
How Will CEA’s Debt Collection Services Impact My Relationship with My Customer?
Most companies now choose to outsource their debt collection services, whether that involves commercial debts or customer unpaid invoices. Thanks to our professional service, we will do everything in our power to maintain your relationship with the B2C or B2B customer. Our professional team will deal with your customers in a calm and respectful manner. All the methods we use are completely legal, and at no point will we ever harass the debtor.
What Happens If the Debtor Pays Us Directly?
In most cases, the payment of commercial debts is authorised by the customer’s accounts department. They may hold off on paying invoices (particularly large ones) to maintain their cashflow. Once they start receiving letters from a professional commercial debt recovery company, they will often be quick to pay the invoice.
If the debtor pays you after we’ve become involved (minus our fees) then you will be liable to pay our costs. This can be easy to deal with by apportioning the remaining debt to the customer’s account. This means that the debtor will not have fully discharged the debt as it has incurred additional costs on your part.
For more information on this process, talk to our commercial debt collectors directly!