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. We charge a “Success Fee” calculated on the extra that we were able to recover. If we cannot collect the full debt (for example, if the debtor has gone into liquidation or administration), we charge a percentage of the sum recovered. The charges are detailed on the Instruction Form that is provided for clients.
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.
If necessary, we will negotiate between the client and the debtor if there is any query regarding the invoice(s) in question, quality of goods supplied etc etc.
If necessary, we will negotiate a payment plan to settle the debt as soon as possible. Interest charges continue to accrue on each overdue invoice until it is paid in full.
We keep our clients informed of the progress of the case via email.
If we consider that the debt will only be paid after County Court or bankruptcy / striking-off proceedings, then we will complete all the necessary forms to progress the case through the necessary procedures. We hope, however, that our intervention will mean that formal proceedings will not be necessary to recover the debt.
If you are not ready to instruct us yet, or would like some help with credit control, we provide our clients (and prospective clients) with free “Your Payment is Late” cards which you can attach to statements or overdue copy invoices sent to your customers. If you would like some of these, without any obligation to use our services, simply complete the online form.
For further information on how we can help to collect payment on overdue invoices, or to request an Instruction Form, simply contact us.