Recruitment Agencies

Specialists in Recruitment Debt Recovery

Sterling Debt Recovery have been collecting debts for recruitment agencies since 2007. Over the years collecting recruitment debts has become the main focus of our business. We are the only debt collection agency with collectors specialising in the recruitment sector. We understand the sector, your terms of business, the disputes that arise, and how to achieve payment quickly.

Commission only debt collection

One of the reasons recruiters like to work with us is that we work on a commission only basis, just like you do. We don’t charge an up-front fee and we only get paid if you do.

In almost all cases we are able to add late payment interest, fees and recovery costs to the debt meaning that the debtor effectively covers our fee. By default we will pursue the highest debt value permissible by your terms of business and statute, but if you want us to be lenient with your debtor, so you can retain them as a client for example, then you may decide to waive the late fees.

Disputed debts and back door cases

Recruitment sector invoices are often disputed. Either the debtor believes that no payment is due, often because they misunderstand their liability under the terms of business, or they may raise an illegitimate dispute in an attempt to avoid payment. Sterling understands the terms of business and how they apply, we understand how to relay this to the debtor and how to resolve disputes such as:

• The candidate leaves within the rebate period but the debtor has breached the terms of business (usually by non-payment) negating their right to the rebate/replacement candidate.
• The debtor claims they found the candidate via another agency or independently.
• The client refers the candidate to another company (for example in the same group).
• Temp to perm fees.
• Back door hire cases.

Back Door Hire Placements

A growing issue for the recruitment sector is that of missed fees due to back door hire placements. Sterling has developed HireChecker, our back door hire discovery service. HireChecker allows agencies to monitor and track down back door hire placements quickly and cost effectively on a ‘fee per find’ basis.

Once Sterling has found your back door cases you are free to bring them to your customer’s attention and invoice for them, or come to another arrangement. Sometimes, particularly with larger customers, the back door case can be a genuine oversight on behalf of the customer, often due to poor process or record keeping. For example the candidate may have been referred by a 2^nd agency and hired in another role.

If the customer refuses to pay for the engagement and you wish to pursue the debt then Sterling are able to collect in our Debt Recovery service on a commission only basis.

Legal advice and debt litigation

Sterling collect the majority of debts referred to us without the need for legal proceedings. In some cases however litigation is appropriate. Where legal action is necessary to collect a debt, Sterling will contact our client to discuss the merits and risks of such action and will only advise our client to take action if a positive cash outcome can be achieved. Our solicitor* has extensive experience in litigating on recruitment sector terms of business and therefore is able to analyse and put together a strong case efficiently. The strength of our submissions means the majority of cases are settled without going to court.

Weaknesses in recruitment terms of business (including those most commonly used in the UK) can create loopholes, allowing disreputable customers to avoid payment. Sterling’s solicitor has developed terms using his many years’ experience of cases in the sector. He is available to review your terms of business, to tighten them up, and also for advice on process to ensure that your terms are incorporated correctly when you take on new clients.

*Sterling Debt Recovery uses an independent 3^rd party solicitor based in our office.