Traditional business debt recovery typically involves a debt collection agency chasing a business for money they owe to another business. If a customer has failed to pay you, even after you’ve sent them a reminder letter and possibly a solicitor’s letter, you might at this stage enlist a debt collection agency to collect payment on your behalf.
Debt resolution is a more collaborative approach to debt collection and differs from traditional business debt recovery. Ko-bolt seek to preserve the trading relationships between you and your customers. If you place a debt with Ko-bolt, their team will open up a dialogue with your customer and offer expert support. If your customer is unable to repay you in full immediately, Ko-bolt will work with them to define an affordable repayment plan. They can also help your customers to recover funds from their own customers – cash flow problems are a common source of supply chain bad debt.
Yes. You can place a debt with Ko-bolt on a ‘no collection, no commission’ basis, so if you don’t get paid, neither does Ko-bolt.
There are no joining fees, annual fees or placement fees. Under the Late Payment of Commercial Debts (interest) Act 1998 and the Debt Regulations Act 2013, Ko-bolt is able to add its collection costs to the debt and when it collects its fees from the customer, you’re only liable for the VAT, and any interest Ko-bolt recover is 100% yours.
The sooner you start the debt resolution process, the greater the chance of recovering your debt without legal action. It is recommended that you enlist Ko-bolt (by placing your debt) at or around 60 days after an invoice was due. It’s worth noting that Ko-bolt has more success collecting costs when the debt is placed early.
You’ll want to try and legal action because it can be costly and time-consuming – and it could be a long time before you receive your money.
Your customer is encouraged to pay directly to Ko-bolt. This gives Ko-bolt transparency over any incoming payments.
A typical non-contested debt collection process typically takes less than 21 days with Ko-bolt.
Step 1: Register for your free Ko-bolt account (Swoop discount automatically applied).
Step 2: Once registered you can place a debt.
Step 3: Ko-bolt reviews your information for, amount other things, regulatory compliance.
Step 4: Ko-bolt issues your customer with a written request for payment, which summarises the debt value, plus interest and charges.
Step 5: Ko-bolt’s debt resolution team contacts your customer by phone to discuss their liquidity position and negotiate the best solution for all parties.
Step 6: If your buyer has not responded Ko-bolt issues a written final demand – this is the final opportunity for your customer to respond before Ko-bolt engages a solicitor to recover the debt.
Step 7: Ko-bolt’s specialist legal partner sends a Letter Before Action (LBA) to your customer, at no cost to you. This is a legal requirement before legal action can take place and is very effective at engaging the customer.
Step 8: If you still haven’t been paid, Ko-bolt pursues payment via legal action, which may involve the issue of a Statutory Demand or a County Court Summons. A solicitor will review your file before making their recommendation on the best course of action – they will not take any action without your authority.
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