Sale of Debt

[Aegis]

We've generally ignored debt in the past. we are however now at a scale where it's normally thousands per end of quarter that sits as bad debt with unresponsive debtors.

All the debtors are business' (we are b2b), so it's to my knowledge that sale of the debt to a DCA is perfectly legitimate.

Can anyone that has gone through this process offer advice.

Many thanks.

 

[fisicx]

Can’t answer your question but why are you dealing with business who won’t pay?

 

[Mark T Jones]

Options include

Sell debt - you will get a fairly small fraction of value

Invoice finance = borrow against debt with varying degrees of collection included

Recover the debt via a collections agency.

However, moving forward it does look like you'd benefit from having a solid credit control policy in place. That's a policy that starts before you offer credit, not after payment is due

 

[Lisa Thomas]

I can recommend a debt collector if you don't find one on here. Feel free to dm me.

 

[Aegis]

Can’t answer your question but why are you dealing with business who won’t pay?

We deal with all manner of business'. Some (a minority) just decide they either won't or can't pay. The latter we're always happy to work, the former... would be the reason for the thread.

 

[Aegis]

Options include

Sell debt - you will get a fairly small fraction of value

Invoice finance = borrow against debt with varying degrees of collection included

Recover the debt via a collections agency.

However, moving forward it does look like you'd benefit from having a solid credit control policy in place. That's a policy that starts before you offer credit, not after payment is due

98% of business' we deal are no issue, and service costs usually modest enough not to worry.

Cumulatively however it now ends up as thousands as we've grown particularly fast in the past year.

 

[fisicx]

We deal with all manner of business'. Some (a minority) just decide they either won't or can't pay. The latter we're always happy to work, the former... would be the reason for the thread.

Then as already suggested pay for invoice financing or trade credit insurance. Or get a deposit with milestones.

 

[Ian J]

Then as already suggested pay for invoice financing or trade credit insurance.

Invoice finance companies generally won't fund any invoices over 90 days past due