The bulk of our work at DCS is supporting SMEs to collect payment of overdue invoices.
Clients pay DCS an Initial Instruction fee for each case that we take on. Once instructed we will promptly contact the debtor with the aim of swiftly collecting the sum owed to the client. The debtor is provided with the bank account details of our client so that they can make payment direct to our client.
For business-to-business debts we use the provisions of the Late Payment of Commercial Debts (Interest) Act 1998 to add Compensation Entitlement, Interest Charges and (where applicable) additional debt collection costs to the debt. As a consequence, the sum recovered from the debtor can be significantly higher than the initial debt that DCS was asked to collect.
Once instructed we will calculate the late payment fees, interest charges and any additional debt collection costs due from the debtor in addition to the overdue invoice(s).
We will then write to the company (usually by Royal Mail ‘Signed For’) requesting payment within ten days. Where the debtor is a limited company we will write to both their Registered Office and, where different, their usual business address.
We usually follow up our letter with a telephone call a few days after the debtor receives our letter.
The debtor will be advised that either County Court action or Insolvency / Bankruptcy proceedings will be taken if they do not respond.
When necessary, we act as mediators between the client and the debtor to address any concerns related to the invoice(s), quality of goods supplied, or other relevant issues.
If appropriate, we negotiate a payment plan with the debtor to expedite debt settlement. It’s important to note that interest charges continue to accrue on each overdue invoice until it is paid in full.
Throughout the process, we maintain regular communication with our clients, providing progress updates via email.
If we determine that the debt can only be recovered through County Court or insolvency/striking-off proceedings, we handle all the necessary paperwork and procedures. However, our aim is to intervene in a way that avoids the need for formal proceedings to recover the debt.
If you are not yet ready to instruct us or require assistance with credit control, we offer free “Your Payment is Late” cards to our clients (and prospective clients). These cards can be attached to statements or overdue copy invoices sent to your customers. To request these cards, without any obligation to use our services, simply complete the online form.
For further information on how we can assist in collecting payment for overdue invoices or to request an Instruction Form, please don’t hesitate to contact us.