What is the debt recovery and collection process? - Cobra Financial Solutions Ltd

No-nonsense, straight-talking debt collection service

Dealing with a debtor is never easy. But knowing the correct debt recovery and collection process can put you back in control.

So follow these simple steps to ensure you get your money back in your pocket. Where it belongs.

Invoice correctly

Almost half of all invoices in the UK are paid late. So to ensure you receive speedy payment, it’s vital that you issue all invoices correctly.

Your invoices should include:

  • A date of invoice
  • Your unique identification number
  • Your company details
  • The customer’s company details
  • A summary of the product or service they have received
  • The full amount owed plus VAT


Failure to include vital payment information on your invoice sends out the wrong message to your clients. Especially to serial late or non-payers. So it’s good practice to state your terms and conditions on all invoices. Clear and detailed late payment information encourages buyers to action invoices promptly. If clients believe invoices are precise and thorough, they’re less likely to question the professionalism of your business, and more importantly, your willingness to prioritise debt recovery.

Send a Final Notice Letter

So what happens if your client fails to action your invoice?

If your terms stipulate payment within 28 days, but your client hasn’t paid by day 48, then send them a 7-day letter, or a Final Notice Letter. This gives your debtor one last opportunity to action the payment.

A 7-day letter should inform your debtor that if monies are not paid within 7 days, you will proceed to litigation. This should be open ended. If you specifically state court proceedings, your debtor may relax. Court waiting times are reportedly exceeding 18 months. So by stating your willingness to proceed to litigation if necessary, your clients will know you’re serious about debt collection.

The letter should include:

  • Your name, address and customer details
  • What is owed and why, including any interest or compensation accumulated as a result of the non-payment
  • Which actions you’ve taken in order to recover the costs
  • Copies of agreements, receipts, invoices, statements or signed contracts
  • The final response date
  • Your willingness to proceed with litigation if payment isn’t made

You can write the letter yourself, or you can ask a solicitor to do this for you. Solicitors’ letters start at around £20, although hourly rates are usually in excess of £50.

Why Choose Cobra as your debt collection agency

When it comes to dealing with your debtor, if you feel like you’re banging your head against a brick wall, or you simply cannot face wasting a single second more trying to reclaim your money, then you need Cobra Financial Solutions.

If your debtor doesn’t pay within the 7-day window stipulated on your Final Notice Letter, contact our collection team. We will investigate the debt, and if we believe it’s actionable, we can begin the collection process within just 48 hours.

The team here at Cobra know how stressful and time consuming dealing with a debtor can be. So we cut the nonsense and deliver a fast, stress-free debt collection solution. We’re specialists in what we do. And that makes us stand out from the crowd.

Yes, we use a step-by-step process to collect our clients’ money, but our approach will differ widely depending on the circumstances of each specific case. What’s vitally important is that debtors are surprised. A solicitor will write a letter to a debtor informing them of the recovery process. But this serves to only empower the debtor, as they can use the information provided to envisage a best and worst case scenario. Repeat non-payers will also be acutely aware that creditors will have to incur a substantial fee should they wish to escalate to court proceedings.

We believe that debts are like fingerprints; no two debts are the same. So that’s why the team here at Cobra Financial Solutions deliver a bespoke debt collection service, every time. We value your business and our partnership, and upholding your reputation is our priority.

So trust the Cobra team to get your money back.

  • An 89% success rate
  • National award winners
  • Fast results
  • Unrivalled customer service
  • 75 years’ combined industry experience
  • Transparent and professional
  • Flexible pricing
  • A truly international service
  • Established in 2009
  • 24/7 client portal access
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