Debt collection in United Kingdom

Do you have an unpaid bill in the UK? We regularly collect debts for clients across the UK and have specialist experience of international debt collection for companies outside of the United Kingdom.

How to set up an efficient UK debt collection strategy?

We use tried and tested ways to recover debts for our clients. These involve our debt collection procedures which are set by our regulator The Financial Conduct Authority and also through methods we have evolved ourselves over the last 20 years of being in business.

We use a combination of this and also Insolvency Laws in the United Kingdom to recover debts. This ensures that we are not only efficient, but also compliant.

Manage relationships with international debtors to facilitate debt collection

We would do this by asking the international debtors probing questions to see if they had any debts on their ledgers which we could maybe assit them in collecting. If a company states that they are experiencing cashflow issues then the company is usually having issues collecting debts from their clients on their ledger which we can help with.

Current statistics on debt collection in UK

It is estimated that Corporate debt in the UK currently stands at around 1.9 Trillion pounds and this is increasing on a year to year basis. A lot of Toxic Debt will be included in this figure which will be impossible to recover. As a business in our last financial year we had a 78% success rate in the recovery of Corporate Debt.

How can the data be used to improve collection processes?

We always advise clients to instruct us as soon as possible. This is not because we are touting for additional work, but the quicker a debt is escalated to a Debt Collection Agency or a solicitor the easier and quicker it is to recover. We usually advise our clients to instruct us once an invoice reaches 90 days old. This way the debt is still fairly fresh in the debtors eyes and they are more likely to pay.

We also advise our clients to collect as much information as possible on their clients such as landline and mobile numbers, email addresses, home addresses for Directors etc. All of this data helps us recover our clients funds more effectively.

Typical debt collection client profiles & types

We regularly work with clients across the following sectors:



Plant Hire



Insolvency Practitioners

UK Debt Collection - Frequently asked Questions

What are the appropriate legal procedures to collect outstanding debts in the UK ?

There are several different legal routes which we can proceed down should our debt recovery methods be unsuccessful, detailed below –

Business to Consumer Debts

We can raise Judgment through the courts, once the court has granted us Judgment then we can pass this to a team of High Court Enforcement Officers or Bailiff’s depending on the size of the debt to enforce the Judgment we have received and seize assets to the value of the debt.

Disputed actions both Consumer and Business to Business can be very costly and time consuming. They can also involve clients attending court to give evidence. Should the Pursuer lose the case then they will need to pay the Defenders legal costs as well as their own. They may also have to pay any counterclaim raised by the Defender.

Business to Business Debts

We can raise Judgment against the company through the courts as we do with Consumer Debts. Once Judgment has been granted this can be passed to High Court Enforcement Officers or Bailiff’s to enforce the Judgment we have received. Another more effective and quicker way to recover debt if the company is well established and has assets is for us to serve a Statutory Demand on the company. The demand is served under a Section in the Insolvency Act and is sent to the company by Registered Post. Once this has been served it will give the company three days from receipt to pay or come to us with a proposal to get the debt settled. Should no response or agreement be reached we can use the expired demand in court to prove that the company has failed in its ability to repay its debts as they fall due and should be wound up accordingly. This is an extremely effective way of recovering money in the UK against a company that has substantial assets or maybe working on several high value contracts

What are the costs and fees associated with UK debt collection ?

Our clients instruct Debt Collect UK on a no collection no fee basis and we do not charge any upfront fees or registration costs.

We also work in connection with a firm of solicitors who after carrying out a risk assesment on a business or individual that we are pursuing will present a Winding Up Petition or Bankruptcy Petition free of charge. If the risk assesment fails then costs vary for raising proceedings and can be provided on request.

Our rates are as follows –

Business to Consumer Debts – Debts under a year old 15% of the total amount collected, over a year old 25% of the total amount collected.

Business to Business Debts – Debts under a year old 10% of the first £10,000 collected and 5% thereafter, over a year old 15% of the total amount collected.

We use UK Government Late Payment Legislation for add feasible Debt Recovery Costs and interest from the due date of our clients invoices to the original sums owed for Business to Business debt recovery. If we can get a company to pay then we have a good success rate in the recovery of the costs and interest which take up a large percentage of our fees if not all of them.

We are currently unable to add any additional fees to Consumer collections in the UK due to a change in legislation. We can however add court and legal costs to the sums owed if we have to raise proceedings.  

How can I measure the performance of my debt collection strategies ?

As we work on a no collection no fee basis for all of our cases our strategy on debt recovery has to be effective otherwise, we wouldn’t survive as we would not earn any commission if we failed to recover debts for our clients.

Over the last 20 years we have been in business we have tweaked and evolved our debt collection strategy depending on various factors in the market, such as our fee structure, UK financial performance, recessions, interest rate fluctuations and any new legislation put in place by our regulators.

If revenues drop then we will look at what processes and strategy we have in place and change this accordingly when we think a recovery could have been made and possibly hasn’t.

How can I automate debt collection processes to make them more efficient ?

By using a CRM system or Microsoft Dynamics. We are currently looking into this at the moment. 

How can I manage the risks associated with UK debt collection?

We are constantly reviewing the risks associated with Debt Collection. Most of this is managed through the rules and regulations that our regulators dictate that we abide to. 

You have outstanding debts in another country and having problems getting them paid?


Connected countries