The client in this example is a supplier to the catering sector. One of their customers had run up a debt of over £6,000 then just stopped ordering and communicating. The debtor had run into difficulty with their business, even though our client allowed them some extended credit to help maintain and build a strong relationship for future business, the debtor switched to a new supplier in order to obtain even more goods on a credit basis.
Our client had never experienced a situation like this before, so contacted a well known law firm. The law firm sent letters to the debtor but received no response. They then suggested legal action. Luckily our client then were recommended to Sterling, and decided to test our no-win, no-fee service rather than risk throwing considerable good money after bad with the law firm.
We secured a payment negotiating with the debtor by phone within the first 3 days of making contact for £2,000. We then agreed a payment plan with our client’s approval for the debt balance over a short period of time to follow and managed each payment to successful completion (including additional late payment fees which our client could use to cover our commission entirely with).
In future this client will deal with debtors using our service as the next step following their own final demand stage, knowing that we aim to achieve payment quickly without the need for legal action, without any upfront fees and on a win only commission basis.