The 3 biggest mistakes Insolvency Firms make with Debtors
In our many years of dealing with insolvencies we have seen that there are 3 mistakes that Insolvency Practitioners make that can cost them dearly. We’d like to share with you what they are, and how you can avoid them, so that you will maximise your realisations in a Collect Out situation.
Mistake 1: Send out some letters and hope that the money just comes in
If you just send out some letters to the Debtors, asking them for payment of their outstanding invoices, it is unlikely that you will get very far. Sure, there will be some people who will pay, but unless you have a rigorous follow up process with calls and personal contact, you’re likely to get far less than you could. Especially when the insolvency is common knowledge.
Mistake 2: Leave the Debtor Book till last
Many Insolvency Practitioners leave dealing with the Debtor Book till last, after the more technical work has been carried out and all other assets looked at. They are often very busy and need to prioritise their resources, but by doing so, they lose the advantage of collecting in the Debtor Book early and once again risk collecting much less than they could.
Mistake 3: Outsourcing the collections to Solicitors
The IP might outsource this critical service to Solicitors, hoping for reciprocal work that never materialises, whilst paying time costs regardless of success. Let’s be clear, Solicitors don’t ring Debtors, they will send out letters and then take legal action. This is more expensive and will not result in a successful Collect Out.
How to avoid these mistakes and maximise your realisations
If any of these leave you frustrated, concerned or even let down, then you do have options! You can work with Credebt and let us do the hard work for you.
Our main priorities when working for our growing client base are:
1. Make sure you get your fees.
2. Make sure that the majority of the Debt is collected within the first 90 days after appointment.
3. Make sure that when opportunities are identified on the Ledgers being worked on, that they are passed back quickly to our instructor.
For the Won’t Payers we go in efficiently and effectively and make sure they pay.
For the Can’t Payers we ask why? And what can you do to help them?
All of this enhances your relationship with the others involved in the Insolvency, be it the Bank that instructed you, the other Creditors, The ABL’s involved or anyone else, as everyone gets their money faster.
Our proven process works for Collections from day one, or for up to 6 years after.
All collections are on a no-win-no-fee basis.
You will know you are in safe hands, as we already work for several of the top 20 firms in the UK as well as several specialist Insolvency Firms and we are happy to provide references to anyone who wants them as well as case studies that demonstrate our ability in solving mistakes 1-3 above!
How can we help?
Remember that we are the experts in this field and we are more than happy to help you with any issues you may have.
Feel free to contact us for a no obligation chat in total confidence, or arrange your Free Debtor Collateral Review to find out your Position.
Call us on 0845-6385256 or email email@example.com