A Credit Manager can:
- Outsource to a Debt Collection Agency.
- Litigate themselves.
- Sell their debts to a debt buyer which then collects and / or litigates on their behalf.
Anchor Professional Services provide a service that can potentially help with either option – for newer debts no older than 6 months say.
When to use the Debt Service?
A Credit Manager may have a continual flow of unpaid invoices. He / she will come to a point when it is decided to end the chasing of historical debts and focus on newer debts where there is a better chance of recovery. He / she may consider implementing either or a combination of the above options to the historical and / newer debts.
Selling debts provides a cash injection into the business and transfers client management to the debt buyer.
Importantly the selling company can maintain its reputation after the sale by ensuring that certain collection strategies are agreed or excluded after sale.
The younger / newer the debts the higher the price that can be negotiated. This is one of the factors used to determine the price paid for debts.
Anchor Professional Services uses a very persuasive “letter before court action” to prompt payment from clients.
Money Claims on-line is probably not efficient for higher volume of cases. If a Credit Manager takes court action him / herself, even if successful, it can take months before getting payment. Also, Enforcement of a court order can be costly and slow. A Credit Manager may prefer to sell debts instead.
Some debts may be suitable for someone with the “know how” to work on. Some cases just will not settle with even a strong letter before action. It may tempt a Credit Manager to give up and write off the debt. It is more lucrative to sell debts to debt buyers.
Call us for a no obligation chat on 03301136824.
A Credit Manager can:
Anchor Professional Services provide a service that can potentially help with either option – for newer debts no older than 6 months say.
When to use the Debt Service?
A Credit Manager may have a continual flow of unpaid invoices. He / she will come to a point when it is decided to end the chasing of historical debts and focus on newer debts where there is a better chance of recovery. He / she may consider implementing either or a combination of the above options to the historical and / newer debts.
Selling debts provides a cash injection into the business and transfers client management to the debt buyer.
Importantly the selling company can maintain its reputation after the sale by ensuring that certain collection strategies are agreed or excluded after sale.
The younger / newer the debts the higher the price that can be negotiated. This is one of the factors used to determine the price paid for debts.
Anchor Professional Services uses a very persuasive “letter before court action” to prompt payment from clients.
Money Claims on-line is probably not efficient for higher volume of cases. If a Credit Manager takes court action him / herself, even if successful, it can take months before getting payment. Also, Enforcement of a court order can be costly and slow. A Credit Manager may prefer to sell debts instead.
Some debts may be suitable for someone with the “know how” to work on. Some cases just will not settle with even a strong letter before action. It may tempt a Credit Manager to give up and write off the debt. It is more lucrative to sell debts to debt buyers.
Call us for a no obligation chat on 03301136824.