B2B Debt Collection

kanky

Hi,

We have a customer that is dragging their heels with payment. They currently owe approx 7k. When we ring we are given the usual, you have to talk to his person - but I can't give you his number etc.

At this point I am considering my options. Straight to a solicitor or debt collection company.

I am 99% sure the company can pay, but simply won't.

Any ideas of the best approach and or recommendations for solicitors/debt collectors?

Thanks.

pedroeibar1

If it really is long overdue then doorstep them. Find out what X drives, see that his/her car is in the carpark and just go to their reception, ask to see X and sit there until you get a cheque.. Then, when another comes into reception take out your phone and say into it "Hi, No, I'm still here, I'm waiting for a cheque"... If that fails I'd go the solicitor route. Don't worry about losing the customer, with that hassle they are not worthwile..

RiseToMe

kanky wrote: »

Hi,

We have a customer that is dragging their heels with payment. They currently owe approx 7k. When we ring we are given the usual, you have to talk to his person - but I can't give you his number etc.

At this point I am considering my options. Straight to a solicitor or debt collection company.

I am 99% sure the company can pay, but simply won't.

Any ideas of the best approach and or recommendations for solicitors/debt collectors?

Thanks.

Had something like this before and I looked into the costs of both but it was when I was UK based.

In our case we looked at debt collection and just say the cost was 1k and the balance owed was 10k, I sent a final demand letter saying if payment was recieved within 7 working days we would settle at 9k, however past this the full debt was being handed to a debt collection agency.

Worked 3 out of 3 times.

Yep doorstep them. Once you speak face to face with the right person then you should know pretty fast if they intend to pay you or not.

pedronomix

I always found the ould 21 day notice by registered post of your intention to seek the appointment of a liquidator to be very very effective in getting the money in, if they have it. The limit has been raised to 10k under the new act but most buckle and pay, if you proceed their credit rating will plunge and could precipitate a creditor stampede.

The real question is, has the creditor got the bottle to play hard ball?

kanky

Would you have a sample 21 day letter by any chance?

Gloomtastic!

kanky wrote: »

I am 99% sure the company can pay, but simply won't.

You need to persuade them otherwise. You do that through fear. Not fear of a legal threat. If they're seasoned professionals, they won't bat an eyelid and will play the legal game to delay payment further.

You could use a Debt Collection firm but you might be throwing good money after bad and lose the lot.

Doorstepping is the best way. The fear of being made to look a failure in front of their staff/family will have them reaching for their cheque books faster than any other method.

It's your money, you earned it, do it to them before they do it to you!

pedronomix

http://www.frielstafford.ie/useful-articles/section-214/

By registered letter or hand service



....... persuant to Section 570 of the Companies Act 2014 we hereby give you 21 days notice of our intention to apply, without further recourse to you, to the High Court to have a liquidator appointed to your company XYZ Ltd of registered address........ due to your inability to discharge your debts due to us. Be aware that since such petitions are published publicly, your failure to deal with this matter urgently could have catastrophic consequences for your company, if unresolved by ( insert date of 21st day hence).

signed by either a director or co sec.