A Guide to Debt Recovery – How to Collect Money Owed to You

author-img By Arina Smith 5 Mins Read 11 September 2023

Debt Recovery

Being owed money is always a problematic and stressful experience. This is true for both businesses and private individuals and can cause major financial issues for both.

For example, a private individual may have loaned money to a friend that was in a difficult position. That person may not have repaid them, and so they are now unable to pay their own bills.

Or, a small business may have provided goods and services to a client that is a larger company. Once the agreement was complete, the large company may be delaying payment, as they know the smaller company might not wish to pursue payment as it could harm future business opportunities if the recovery is handled improperly.

In 2020, 80% of small businesses in the UK reported that they were owed money due to unpaid invoices. This number demonstrates how much of an issued debt is for businesses and individuals alike, and one that must be resolved as soon as possible.

Thankfully, there are many ways to recover a debt, as well as a great many professional solutions that are available.

Debt Recovery Options – What Can I Do If Someone Owes Me Money?

Debt Recovery Options – What Can I Do If Someone Owes Me Money?

Every case of debt collection is unique and must be handled according to its own set of circumstances. Listed below are some of the main methods of recovering a debt.

Sending Payment Reminders

Many companies choose to attempt debt recovery themselves using chasing the client for payment. This often comes in the form of phone calls, letters, and emails.

In many cases, this can be quite effective, with clients being reminded of their payment obligations and then going on to pay.

There are, however, those clients that simply ignore all reminders and are perfectly happy to leave the debt unpaid. When this happens, it is common for businesses to issue “final warning” style letters that detail the creditor’s intent to escalate the matter to a professional debt collector. This can sometimes prompt a debtor to pay.

Whilst collecting the debt in-house can be effective in some cases, it does take a lot of time and therefore represents a significant cost to a company. Smaller businesses or those who are self-employed may not have this option.

As well as this, there are varying success rates for this method, and many cases eventually get escalated to one of the other options on this list, leading to even more expenditure.

Related Reads: Ways to Successfully Consolidate Debt and Credit

Court Action

Many people and businesses choose to take legal action against their debtors. Hiring the services of a debt collection solicitor is often the first thing on people’s minds when they have not been paid, but it is not always the best solution.

Whilst there is no doubt that some cases of debt can be resolved through court action, it often only leads to a CCJ against the debtor, which itself needs to be enforced. The cost of taking someone to court is very high, with many solicitors charging hundreds of pounds per hour for their services.

This cost, combined with the overall length of the court action process can mount up, and many people end up writing off the debt before it can be collected.

As well as this, there is always a risk that your case will be lost, leaving you with lots of legal expenses to pay.


In some cases, it is better to come to a compromise with the debtor. It may be that you have spent a long time chasing them for payment, or you do not wish to risk your relationship in any way with them.

If this is the case, using mediation can be a good way to resolve the matter amicably.

Whilst this is a low-cost option, it will incur a small charge, and you should also consider that you may not get the full amount you are owed back. However, this is a viable choice for those that may not be able to afford more expensive options.

Debt Recovery Agency

In the vast majority of cases, the most beneficial and effective solution is to instruct a professional debt collection agency.

Debt collection agencies provide a low-cost and proven solution for recovering owed money. As well as this, many specialize in particular working sectors or types of debt.

As well as the goal of recovering money, debt recovery agencies also take great care to resolve every case amicably. This is invaluable for businesses, as they can go on to benefit from the increased revenue resulting from a good client relationship.

Frontline Collections, for example, are the UK’s leading private debt collection agency. They specialize in collecting debt for every working sector in the UK and have won awards and accreditations from many sources.

For example, they are the only debt collection agency to be awarded the “gold preferred supplier” status by the Independent Schools Association (ISA). This award puts them as the UK’s premier agency for collecting private schools debt.

Read Also:

Share This Article:


Arina Smith

I enjoy writing and I write quality guest posts on topics of my interest and passion. I have been doing this since my college days. My special interests are in health, fitness, food and following the latest trends in these areas. I am an editor at OnlineNewsBuzz.

View All Posts

Leave a Reply

Your email address will not be published. Required fields are marked *