DEBT COLLECTION PROCESS - NO COLLECT NO FEE
Stage 1: Evaluation of Claim for Payment and Instruction
An experienced Account Director will evaluate the nature of your claim, reasons for non-payment and agree a NO COLLECTION – NO FEE percentage for successful recovery. Please note we also facilitate the recovery of bulk instructions such retention balances or multiple claims. We will advise whether late payment compensation can be applied under The Late Payment of Commercial Debts (Interest) Act 1998.
Where an invoice is not paid or is paid late, the Act and Regulations 2002 & 2013 allow you to charge interest at the annual rate of 8% above base rate for each day your invoices are overdue. You are also entitled under the same regulations to charge compensation against your debtor if an invoice is overdue by as little as a day. The compensation you are allowed to charge depends on the unpaid debt amount.
|Compensation you are entitled to charge for due to late payment:|
|Size of unpaid debt||Compensation|
|£0.01 to £999.99||£40.00|
|£1,000 to £9,999.99||£70.00|
|£10,000 and over||£100.00|
Stage 2: Demand Letter
Based on our evaluation at Stage 1 we will assist with preparation of backing paperwork and dispatch an appropriate demand for payment. Glenwood letters are bespoke to each debt, posted first class and emailed directly to the decision maker. Demand letters are tailored to relevant legal systems dependant on where your debtor is based in the UK and industry specific for claims in construction and civil engineering. Our correspondence is largely customised from our letter suite listed below.
- Retention Demand Letter
- Adjudication Demand Letter
- Contractor Court Demand Letter
- Soft Contractor Demand Letter
- Construction Pre Action Protocol Letter – Applicable to resolving disputed cases ENGLAND & WALES only
- Statutory Demand/Winding Up Petition
Stage 3: Telephone Contact & Legal Action
Where payment has not already been forthcoming your Account Director will contact the debtor by telephone and discuss the reasons for non-payment. Many claims can be resolved by dialogue and Glenwood Contractor Debt Recovery are skilled when negotiating payment. Attempting to resolve by discussion shows you are doing everything possible from your side to find a solution and favourable outcome should you need to begin a formal action.
We provide our clients with a managed legal service and pre -litigation reports specific for the construction industry. When a resolution cannot be reached with your debtor, we don’t believe in immediate referral for legal action and will always try to reach a compromise. If we feel it is financially viable to proceed with legal action then we offer a managed legal service through our commercial partners.
If you are having problems getting paid then Glenwood Construction Debt Recovery can take over the line communication ensuring you do not lose out. Please click INSTRUCT US or call us on 0141 465 9016 for immediate assistance.