It doesn’t matter if you are a business or an individual, it’s important that you are paid any money that’s rightfully yours. This could be from a whole host of things, ranging from an unpaid invoice to a loan that needs repaying. Unfortunately, it’s not always easy to get a debtor to pay, especially if they are purposefully being combative and resistant. This is why debt recovery is so important. But do you know how debt recovery works?
Understanding How the Debt Recovery Process Works
There’s a lot of things that go into debt recovery, which is why most people choose to enlist the help of professional debt collection experts. This streamlines the entire process, ensuring that the debt is recovered as quickly as possible. At Cobra Financial, we have a wide range of debt recovery tools and techniques, but we always start by completing a financial profile of the debtor. This involves verifying their address and looking at their financials, assets and credit. With this information, we can determine if the debtor is in a position to pay, and which of our many debt recovery approaches is likely to work best.
One of the first stages of the debt recovery process is to contact the debtor by phone or letter. This opens up the lines of communication, letting them know that we’re pursuing payment on your behalf. This is our first attempt to negotiate a payment, such a full settlement or an agreed payment plan. However, if our calls and letters are ignored, we need to take things further by talking face-to-face with the debtor.
Common Debt Recovery Tools, Techniques and Tactics
There are a lot of ways to approach debt recovery, and we choose our tools, techniques and tactics on a case-by-case basis. If a debtor has moved or is purposely being evasive, we may put our debtor tracing skills to good use, or we might go one step further and put them under surveillance. If we are struggling to connect with a debtor via phone or letter, we visit them in person, where we use bodycam technology to document every aspect of the meeting. The key thing to know about how debt recovery works, is that the process can be tailored to meet the needs of individual creditors and debtors.
Knowing How Much Debt Recovery Costs
A lot of people make the mistake of assuming that debt recovery is an expensive way to pursue a debt, but that couldn’t be further from the truth. Though there are costs involved with going down the Small Claims Court route, the same cannot be said for working with debt recovery experts. As a creditors, you are provided with the ability to claim debt recovery costs under The Late Payment of Commercial Debts Regulations 2013. So, when you enlist the help of Cobra Financial, you do so knowing that the cost of debt recovery is claimed from the debtor. This is on top of the money that they owe, and so you aren’t out of pocket.
To find out more about how debt recovery works, get in touch with our helpful team.
