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No Collect no Fee
One of the main concerns for any business seeking UK debt recovery is what the potential costs are, and so if you decide to use a debt collection agency you should explore their provisions for a no collect no fee agreement. You will need to weigh up the costs to your business if you decide to proceed, remembering that recovering bad debt can be both a time-consuming and onerous process. You also need to consider the relationship your business has with the client or other party, if you are going to pursue bad debtors.
By choosing to hand the process over to a good debt recovery solicitor, who is highly experienced at chasing down bad payers, you will get an efficient, transparent service from experts. It is likely to cost your business less in the long run, than if you had devoted your own resources to the debt recovery operation.
UK debt collectors will consider all debt recovery jobs under a no collect no fee basis. No collect no fee debt collection should be discussed and negotiated with your chosen UK debt collection agent at the outset. At its basic level, no collect no fee is exactly what it says. If the debt collector is unable to collect the debt then you will not have to pay anything, provided this has been agreed prior to entering into a contract.
However, debt recovery solicitors and other debt collectors are not charities and will work very hard to get the debt resolution your company needs, whilst leaving you secure in the knowledge that if it proves impossible to collect the debt you will not be left seriously out of pocket.
There are many different methods of no collect no fee debt collection and these depend on the circumstances of the case. Your debt recovery solicitor will advise on the options available so that you can make the choice that best suits your situation.