Recovering debt for business is an uphill challenge. Once your internal collections cycle has been exhausted, it is time to bring in external collection experts.
This raises the question, how good are your first placement debt collection agency?
Here at Financial Recoveries Limited, our FTSE 100 customer decided to get a second opinion and the result of this decision is paying them dividends.
During 2018 the team at Financial Recoveries Limited took on a project to work a ledger of second placement debts. The average age of these debts was 324 days overdue.
The debts had been worked internally by our customer for six months, before being passed to their external debt collection agency for a further five months pursuit and chase.
We agreed that this legacy debt would be passed to Financial Recoveries Limited, and over an eight-month period our team of exceptional collectors have secured recovery of 71% of this debt.
Historically, the process for our customer would have been to write-off the debts as uncollectable, once the external agency had returned them.
Thanks to our data-driven approach and innovative solution, our team has added a six-figure sum to our customers bottom line.
In summary, the team at Financial Recoveries Limited recovered 71% of debt passed to us by our FTSE 100 customer. The debt had an average age of 324 days overdue and previous attempts at recovery both internally and with an external collection agency.
Further to this, Financial Recoveries Limited also secured a contribution towards interest and compensation levied on these debts, under the Late Payment of Commercial Debts Act (LPCDA) 1998 on 41% of the accounts that paid.
If you are responsible for your company’s finances and are interested in learning more about how the team at Financial Recoveries Limited can help maximise your profits through the efficient collection of debt, then please contact and connect via LinkedIn for further information.