Below are several case studies illustrating our approach to the debt recovery process:-
The Construction company
This company had enjoyed great success and had built up a large portfolio of clients. However during the good years of growth it had failed to diligently recover a large number of contract retention sums due to it. The retention sums varied from 1 - 5% of the contract cost and some dated back a number of years.
This company consulted us and we initiated our recovery process on their behalf. As some of the debts were aged we were able to charge interest at 13.5% on the outstanding sums. The addition of interest at this rate and the claimed administrative costs greatly increased the sum sued for and the pressure on the debtor to settle quickly. Within 7 weeks of commencing recovery procedure we had recovered over 90% of the building company's bad debts, a sum of over £100,000.
The Sole Trader
This small firm approached us about a number of outstanding debts owed to it by a larger contractor. The recession had put our client in a difficult financial position and it required to recover as much cash as possible in order to continue to trade profitably and maintain employment.
The debtor had promised many times to settle the accounts but had consistently broken those promises. The debtor had stopped responding to telephone calls and correspondence which is a sign of possible insolvency.
We initiated recovery on behalf of our client. The client now has a decree for the full amount plus interest, administrative costs and court expenses. The debtor, realising that he will be bankrupt if he does not settle with our client, has raised finance from the bank to settle the debt.
The Professional Services Firm
This firm had a number of old debts owed by clients going back some time. They had been reluctant to press some of the clients for payment as they had 'good' relations with them. However as the debts had become more aged the clients urge to pay them had diminished. Some clients had stalled payment ostensibly on the promise of further work.
By putting the recovery process in our hands this firm were able to decouple from a recovery process which they found difficult.
We understand the problems some firms have in recovering debts. On the one hand continuing client relations requires careful management. On the other hand clients do understand that you cannot work for nothing and that they are obliged to pay for the goods and services you provide.
We were able to recover the debt on behalf of the client by taking the recovery process out of the clients hands. In most cases the firm preserved the client relationship and the debt was repaid.
For further information please call John Carruthers on 0141 332 0913 or 07764 253 998