Member Article

Debt Collection - propping up the UK economy

Following the economic uncertainty in the UK after the ‘Brexit referendum’, the country’s Commercial Debt Collection Agencies have played an even important role in ensuring the economy remains stable. The current day to day world of Business commerce in the UK has changed somewhat since the referendum and the life blood of which is the cash flow of its SME’s.

The British Debt Collection Industry has boomed over the past decade, developing its own sub sectors and specialist niches and areas of expertise and this has helped support the flourishing of the economy as a whole. However choosing the best bit Debt Collection Company for your businesses needs has never been more important with very important factors to consider.

A Debt Collection Agency will effectively become an extension of a company’s credit control process so therefore it is only natural you should be looking to procure the services of a professional collection agency with the relevant professional accreditations and licences. It also has to be said that it is of paramount importance that companies are using a professional and ethical Business Debt Collection agency. Selecting an unethical and unprofessional Agency can have catastrophic effects and could well prove to be a major liability both financially and in terms of the reputation of a business.

Results should also be top of the agenda when it comes to sourcing a Debt Recovery solution. It is amazing how many people think ‘Debt Collection Agencies are all the same’ – Well, that is like saying all construction companies are the same, all teachers are the same, all doctors are the same. Quite clearly that is not the case at all and the results, or in this case, the money collected will vary massively dependant on which choice is made.

The cost of recovering debt can be minimal. Once again, it comes down to making the right selection of agency at outset. A Debt Collection Agency that is simply a marketing front for a law firm will have very different strategies and pricing policies than the conventional Debt Collection Agency. They may not be as expedient and there will be a very different ‘carrot and stick’ scenario as quite clearly they would profit from the protraction of a case.

The importance of a Professional Debt Collection Agency is something that really should not be underestimated yet amazingly businesses make bad choices they regret. Cheap is certainly not cheerful and choosing the right agency will drastically affect the trajectory of the amount of debt recovered.

The effectiveness of a efficient Debt Collection Agency and its value can be a very beneficial element of your company’s ability to maximise its profitability. Under estimating the value and effectiveness of a Professional Debt Collection Agency can be very much to a company’s detriment both in terms of cost effectiveness economical and brand reputation. Sourcing a proficient Debt Collection Agency that has ethics and integrity will very much become a valued partner of a business. The UK’s Debt Collection Agency is very much broken down into 3 sections. There is Commercial Debt Collection for Business to Business transactions. The Consumer sector which is more for credit cards and utilities and then there is the Private sector.

The Award winning Federal Management are seen to be the UK’s leading Commercial Debt Collection Agency offering a highly professional and inclusive debt recovery service. There are a number of companies that operate ‘call centre’ debt collection services for the blue chip sector whilst Frontline Collections are heavily revered for their pioneering work in the Private Debt Collection sector, recovering millions of pounds every year in private and personal debt collection.

The Financial Conduct Authority are largely responsible for regulating the work of most Debt Collection firms in the UK whilst the major trade Association is the Credit Services Association.

This was posted in Bdaily's Members' News section by Jaxi Murgan .