Business Debt Recovery & Commercial Debt Collection Questions and Answers

Here are the most frequently asked quesions and answers

How can I get my customer to pay their overdue invoice?

The quicker you act the more chance you have of getting paid. If your prompt action is getting nowhere call us as you need to act quickly and firmly to recover your money as soon as possible. Call us or use our FREE letter before action with tips on the best wording to use.

Do I have to pay for you to look at our debt?

No, it is completely free for us to look at your business debt. We offer a free business debt recovery consultation service. In nearly all cases you only pay us when we win and you get your monies.

Can I speak to somebody before I decide to commision Business Debt Recovery?

Of course, we often speak to people and they decide that armed with our advice they feel empowered to do it themselves. You can call us on 0333 121 0161 for a free consultation and someone will answer or call you back. There is also a contact page.

What happens if I decide to engage AVC Debt Recovery after I fill the online form in?

We send you a form and a comprehensive  list of what we require as well as a set of our Terms and Conditions.

How long does the form take to fill in.it take to sign up?

Most people take around 15 minutes, but there is also a list of specific data that we require to ensure we can deliver your monies into your account. The time that takes depends upon how efficient your processes are.

What happens after I fill the form in?

We read everything and if we feel we have enough information we make a start. If not we seek further information from you. 

We than make a start and call the debtor. We usually contact you back with what they said. Sometimes we call back to say the monies are paid. The record is 15 minutes.

What checks do you do on my company before I can become a client?

We look at the chance of recovering the debt as our first port of call. If we have suspicions that you have cash flow or insolvency issues then we may decline the case or seek the monies are paid into our client payment account.

Do I need to visit your office at all?

We work via "no win no fee", so we see this as a time cost that may not be necessary if the quality of your paperwork is sufficient. Some client’s like to put a  face to the name (the co-founder's picture is on Linked In)  and you are more than welcome to do that. Our simple administration, processes  and collection systems allows us to file your documents in a manner that gives us the access to ensure we have the facts when we speak to the debtor..

Will the profile of my Business Debt Recovery you look at fit with the type of clients you serve?

We enact Business Debt Recovery and Commercial Debt Collection for any debt over £600.00 and work for individuals sole traders, partnerships, SMEs, LLPs  and Limited Companies. 

I have an old ledger of debt that I would like to collect – is this something you can assist with?

Absolutely 100%. We are set up to handle a large volume of accounts at varying stages of collection, so if you work with us you will receive an extremely thorough and efficient service. Any invoice under 6 years will be looked at. 

How do you handle conflicts of interest?

We do not take them on. If we find we do have a conflict, we will refer you to an alternative business debt recovery agency or a solicitor who would be able to pursue the debt on your behalf.

Will there be somebody at AVC Debt Recovery to guide me through my case?

Yes, we will offer you a personal service as we are a small robust team of 3. We are open from 09.00 to 18.00 Monday to Friday and are always available to answer any questions you may have at any step along the way.
 

How can I submit a new case or instructions?

Each business debt requires its own form and data. This increases our chances of successful business debt recovery and getting your monies into your account. 

How can I track the progress of my cases?

In all business debt recovery we keep our clients informed, but our service is only ever one telephone call away. 

What am I responsible for after I pass a debt on to you?

You are responsible for all costs and disbursements that we accrue at your request for any business debt recovery, e.g. attendance at meetings, travel, Court issue fees etc. We are not solicitors, so if a claim is filed in the court you will be acting as a Claimant in person (unless you seek to pass the matter on to our solicitor partners when you will be responsible for the legal costs and disbursements) who will represent you. You are responsible for any notifications or letters your receive and passing them to us as pdf copies via email.

Will I have control over any legal costs?

Absolutely! There is a clear price for every service we provide and you will have to approve each action we take on your behalf before we do anything.

What are your opening hours?

We are open during normal office hours: Mon to Fri 09.00 to 6pm .
 

What statistical reports can I expect?

We use specifically designed formats which we will send to you, but our focus is on delivery of your monies not excessive administration showing what we do. We KISS everything and operate business debt recovery and Commercial debt collection on a results basis without excessive reports.

What are your service levels?

We are not into issuing SLAs or other administration. We are focused only on getting your monies. We state we will turn around specific instructions within 24 hours.

We will normally reply to letters or emails the same day or next day following your communication

When the person you require is unavailable to take your telephone call, we will ring you back within 4 working hours.

The UK Debt Recovery Process

What happens after I send a letter before action?

If your debtor doesn’t pay or contact you within seven days we would send you a form and a list of what we require. We then make a start. If our assertive persuasiveness does not work we set out the steps for legal action which you take a Claimant in person (unless you wish representation), which we manage at no extra cost. These take the form of County Court proceedings (issuing a claim against your debtor), and eventually get a Judgement against them. Once we have that we enact enforcement via the High Court on your behalf. 

Are there alternatives to issuing a claim?

In appropriate cases we can advise you in insolvency proceedings via a Statutory Demand We can also look  at  a draft winding up petition against a company. If payment is not made, the petition is sent to Court to wind up the company.

Is a Statutory Demand the best way to collect a business debt?

Only if it not disputed as a challenge can lead to court costs if the matter is lost. They can be extremely effective in business debt recovery in the right circumstances.

If I start an action in England or Wales and it is undefended, how quickly is it likely to be resolved?

Usually 12 weeks, but  the court process in not an exact science on timings.  A Judgement can be obtained within 21 days of your initial claim, and if the High Court Enforcement ("Can’t Pay We’ll Take it Away") is involved then the case will take between 4 to 6 weeks to be resolved.

What is a Defence?

If your claim is disputed by the defendant, the defendant will fill a defence form detailing the nature of the dispute and file it with the Court. The Court will send you a copy of the defence and ask if you wish to proceed with your claim in light of the defence.

What is Summary Judgment?

A summary Judgment is a means of short-cutting the normal Court process but, because of this, the Court only allows it where there is a clear paper-trail which proves each point in the Claimant’s case and disproves each point made by the Defendant. Because of this it is not suitable where:

1. There is a lack documents
2. There are quality disputes
3. Where what was said is in dispute
4. Where expert evidence is needed to prove some part of the claim
5. Where there are allegations tantamount to fraud.

The hearing is purely to examine the documentary evidence to see whether it proves the Claimant’s case beyond doubt by showing that the Defendant has no reasonable prospect of successfully defending the matter at trial. The Court applies a higher degree of proof to Summary Judgment than at full trial when all the normal safeguards of disclosure of documents etc. would have been completed. The defendant gets the benefit of any doubt.

What is the Pre-Action Protocol for Debt Claims?

It is a procedure, in force from 01/10/2017, to be followed when writing to warn an individual or sole trader that you will be claiming payment from them in court. The protocol requires the letter before action (LBA) to include a great deal more detail about the debt, and it allows the debtor a set number of  days to reply to the LBA using a prescribed form to outline their position. 

The main aims of the protocol are to allow debtors enough time to access legal help if they require it, and to enable the parties to resolve the matter without the need for court involvement. Subsequently, this process takes a great deal longer than the typical 7 to 14 days usually required, and requires much more administration to be carried out by the creditor.