The debt recovery process

Pre-Legal

Our initial approach is to send your debtor an LBA (Letter Before Action) clearly stating the amount of debt owed and requesting payment within 7 days, else Court proceedings may commence. Although your accounts department may already send their own version of the LBA, we find letters from a third party (especially a party dedicated to collecting debt), generally has the desired effect! In fact, 69% of all debts are recovered by LRC are at the LBA stage.

Should the LBA fail to recover any monies, other than the small initial case assignment fee (which can be reduced according to the number of cases you submit), there is no cost to you. Our pre legal services are no win no fee.

LRC also offer a unique Pre-Accounts Solution, aimed at poor payers and/or customers who frequently pay late. Its pointless having payment terms if you don’t adhere to them and our experience has shown that most companies don’t! The upshot of this is a lack of cash flow in your business … and you have bills to pay too, don’t you?

Our Pre-Accounts Solution involves sending a polite and professional letter on your behalf, reminding your customer that their account is shortly due for payment (or is due now). It shows you're serious about payments being made on time and helps reduce the chance of Reputational Risk.

Should you not wish to proceed directly with court action (following an unsuccessful LBA), LRC offer a Collections Service, designed to obtain payment or negotiate instalment arrangements with your debtor. This process usually spans a period of 14 – 28 days, with LRC contacting your debtor by a variety of methods including phone, email, SMS texts, mobile phone and post. Its also a good way to gather further information about your debtor in order to make a decision on the next appropriate course of action.

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