How Payfor Collects Your Debt
Giles Goodman, Payfor's CEO explains how recovery works.

How Payfor Collects Your Debt

A lot of times Creditors come to us with debts and want to know how Payfor collects them. In this article, I'm going to break this down into the different stages of our recovery process.

1. Analysing The Claim

Our new clients sends our collections team the details of the claim which includes invoices, agreement, summary and contact details of the debtor. The key thing here is the summary and the agreement. We'll look at the summary and try to understand what actually happened. We'll look at things like the jurisdiction and how that affects a potential legal recovery which might happen later. We'll look at the financial position of the company and whether the summary of the claim - what the debtor is saying is their position, and look for any potential angles. For example, the debtor says they have no money but meanwhile are hiring new people via Linkedin - that's just one example.

2. Defining The Strategy

Once the team are agreed on what the facts are and the available remedies (both pre and post legal), then we will agree on how we will approach the debtor, the type of communication, to whom it will be addressed. For example, this might take the form of a straight forward recovery process or it might take the form of reaching out to start a dialogue in a more "dispute resolution" type of approach. So there are many different options, its important to define the strategy and get it right from the outset. Its also really important that the strategy reflects the potential legal action which might occur in the future.

3. Implementing The 30 Day Campaign

We'll issue a 30 day recovery process where we will use our best endeavours to reach out to the debtor, state the case based on the agreed upon strategy and instruct the debtor to pay the outstanding debt to Payfor's Client Account. This communication process starts with the initial email and is followed up with daily phone calls. Each week we implement the next stage of the campaign, increasing pressure on the debtor. See the following video explaining more about how we do this:

4. Receiving Payment

Usually, once Payfor has set out the case as to why the debt is owed, providing the debtor has funds and realises that if it doesn't pay then the consequences of legal action would potentially impact its business, the debt is paid. It can take time to arrive at this point, the Payfor team are patient and resilient realising that sometimes debtors have good reasons why they can't pay. We work with all sides in order to achieve a mutually beneficial outcome. The best outcomes are where a debtor is re-onboarded as a client, the debt is solved and the two parties can renew their business relationship.

Thanks for reading this article. Do follow our company page for tips, suggestions and recommendations on how to avoid being owed money and strengthen your Client Agreement.

Please leave a comment with any thoughts and questions!

Alex S.

?? Global Debt Recovery Specialist | Transforming Recruitment Sector Receivables into Revenue ??? | Payfor & OAR Expertise

1 年

Really useful, thanks.

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Monikaben Lala

Chief Marketing Officer | Product MVP Expert | Cyber Security Enthusiast | @ GITEX DUBAI in October

1 年

Giles, thanks for sharing!

Alex Hermann

We help iGaming companies attract clients by building personal brands on LinkedIn.

2 年

I may need this

Gareth Wax

Would you like warm qualified leads ? | Has your brand become well known? Do your ideal clients notice you ? | LinkedIn tips | engage prospects with authority | Magnify your voice online | online marketing strategy

2 年

Giles Goodman good to know there is now a process to recover debt. What is the statute of limitations on this? I worked with acompany that were paying through their US office and then they left the UK owing lots of people money about 4 years ago... could you still recover those?

Taryn April

Accounting Clerk, Co-Founder of Funding Focus, Head of Ops at Add then Multiply

2 年

Very informative Giles Goodman. Thank you for sharing.

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