Commercial debt recovery helps businesses recover monies that are owed to them, from customers who are unwilling to match their payment terms, or pay at all.

The debt recovery process prevents businesses from slipping into cashflow difficulties as a result of not being paid. Commercial debt recovery agencies take over the chasing of late payments on behalf of clients. This allows their clients to spend time more productively on processing customer sales and managing growth.

What is a late payment?

In the absence of an agreed payment date, a late payment is defined in the Late Payment of Commercial Debts (Interest) Act 1998 as a settlement not received 30 days after either the customer received the invoice, or the goods have been delivered or the service was provided.

Where a payment date has been agreed, under the Act the payment must be made within 60 days of that date otherwise it is classed as late.

The Act also allows for interest to be added, based on the time it has taken for the payment to be received.

Top Service is the only debt recovery and credit reference agency specifically servicing the construction industry.

We use our proactive approach to debt recovery, and exclusive access to specific credit information in the construction industry, to secure the settlement of unpaid invoices for construction businesses.

Debt recovery – no collection, no fee

At Top Service we are confident in our ability to recover your invoice debts. We therefore offer our services on a ‘no collection, no fee’ basis.

This is an invaluable reassurance to our clients who don’t want to spend time and money chasing debt that may never be recovered.

How does debt recovery and debt collection work?

Firstly, let’s look at what the difference between debt recovery and debt collection means to you.

Debt collection is where you chase late payments yourself. Debt recovery is where you ask an agency like Top Service to recover the debt on your behalf.

Your debt collection process may look like this:

• Chase the payment once the expected payment date expires through telephone calls and emails.
• Warn that the debtor’s account will be put on hold if payment isn’t received
• Put the account on hold, meaning no more credit is provided
• Final notice telling the debtor that you are one step away from taking them to court
• Legal action through the small claims court or handing the debt over to a recovery agency

All of the above is time consuming and costly, and often leads to enlisting the help of a recovery agency which means further expense.

Debt recovery through Top Service is the ideal choice when there hasn’t yet been any third party collection activity or you don’t feel that legal action is appropriate. This may be because you would prefer to continue to trade with your customer or there is a potential dispute.

We take ownership of your debt recovery. Under the Late Payment of Commercial Debts (Interest) Act 1998 we can also claim interest on your behalf, as well as compensation. Interest can be claimed at 8% above the base rate, while the compensation figure is determined by the amount of debt being recovered, ranging from £40 to £100. In addition, we can claim collection costs on your behalf.

Why choose Top Service for your commercial debt recovery?

As construction sector specialists, the Top Service debt recovery collectors use their industry expertise and insight when recovering debts, which gives us a huge advantage over other debt recovery agencies. This offers a substantial benefit to your business.

The Top Service debt recovery collectors have exceptional negotiation skills. We understand that while the client has failed to pay your invoice, you may still value their custom. With this in mind, we approach all cases sensitively but with a firmness and clarity that makes the debtor understand the gravity of the situation.

Top Service offer an Alternative Dispute Resolution (ADR) service which is an impartial assessment of a dispute between you and your debtor to reach a solution or compromise that leads to payment.

Prevention rather than cure – why preventing bad debts is the way to grow your business

Of course, rather than reach the point of having to manage bad debts, it is far more beneficial to prevent the bad debts from occurring in the first place.

Deciding on how much credit to give to a new customer and minimising your exposure to bad debt are intrinsic elements of managing growth.

As a credit reference agency, Top Service offer a range of prevention services to our construction industry clients that help them focus on growing their businesses, rather than having to chase debt.

We provide access to credit checks on all limited companies in the UK, and gather ‘insider intelligence’ by collating the trading experiences of subscribed Top Service members from across the construction industry.

These trading experiences provide you with vital intelligence on whether a potential customer is likely to pay on time, if they pay slowly or if they raise a lot of disputes. You can also find out if they have come to you because they are on stop elsewhere or if they have bounced cheques on other companies.

Being forearmed with this information will help you make informed decisions about how much credit to offer which can prevent you from having to deal with bad debt. Instead, your business can grow steadily with less risk.

Insider information at your fingertips – free trial to our subscription

Subscribing to the Top Service construction industry insider intelligence service gives you greater control over cashflow and business growth.

We’d like to invite you to take part in a free trial of our subscription service to experience first-hand its benefits to your construction business. There is no commitment on your part to continue after the trial. No hidden catches! The free 48 hour trial gives you access to as many credit checks as you wish to process during that time.

To provide you with a temporary login, we simply need you to complete our online form. The free 48 hour trial begins from the point of that login first being used.

Get in touch with Top Service for more information on our commercial debt recovery services

Please contact us through our online form or by calling 01527 518800.