Debt Recovery

Debt Recovery

Generally, removals customers pay for their move in advance, so in the majority of cases there is no outstanding bill after the move is completed. On rare occasions (and usually due to significant extra work) the customer may have their bill increased but this is usually paid on or before the day the work is carried out.

Storage customers, on the other hand can sometimes run up debts due to late payments. Although the industry standard terms and conditions are quite clear on the right to hold goods, (Lien) a problem can arise where the outstanding bill exceeds the value of the goods in store.

Lien is supposed to be a deterrent and not a solution to unpaid bills. If a customer resigns to the fact that you can sell their goods, they may decide to ignore the debt in the belief that it is paid from the sale of their goods.

This leaves the storage business with an unpaid bill, a lot of extra admin and one or more containers of goods which, if sold, may cover the cost of the bill or may incur extra disposal costs.

It is highly likely that even after selling off the goods, there is still an outstanding balance to be paid by the customer. This can be either written off or pursued.

Chasing debt can be stressful and time-consuming. Whether the business owners do it themselves or give the task to a member of staff, it takes up time that is better spent on generating new business or looking after paying customers.

Therefore, it is usually better to hand the problem to a professional debt recovery firm. When you take into account staff hours and/or loss of production, the percentage of the debt paid in commission is often trifling. In some cases, the commission paid to the debt recovery agent is as low as 10% of the recovered debt. Fees will obviously vary, as debt recovery is, (much like removals) not a “one-size-fits-all” service.

If each case is slightly different, it makes sense to use a debt recovery provider that offers a custom-made service for each individual client. That is why we recommend Compass Debt Recovery.

As a Fellow of the Chartered Institute of Legal Executives with many years’ experience, Chris from Compass Debt Recovery has a good success rate with pre-litigation debt recovery, for which she offers a “no-collect, no charge” service.

This is a highly cost-effective way of recovering debt and helps to avoid costly legal action.

For more information on the services offered by Compass Debt Recovery, call Chris on 0117 977 0190.


 

A Message from Scott Rust

It was always my goal that AIM membership would be available to all movers, no matter how large or small their operation. The primary purpose of AIM was, (and remains) to bring movers together in an alliance – to provide support and advice, so all members can grow and develop their businesses.

To make AIM viable, I knew we needed to have certain criteria for membership and that those criteria needed to be fair and attainable for all movers. It was obvious that, if an applicant wanted to join but didn’t meet the criteria, they should be helped rather than rejected. So AIM’s policy has always been to use the membership criteria as a to-do list or check list, instead of a set of obstacles or barriers to entry.

AIM should always be run by movers – for movers, which is why the AIM team comprises only of people from within the industry and the AIM Steering Group comprises only of AIM members and the AIM team.

It was always my hope that AIM would develop and grow according to the needs of its membership and this has so far been the case. Although this has been a costly enterprise for me, I am happy with the direction that AIM is going and hope to see its continued growth as more members get involved in creating the trade association they deserve.

So I would like to invite any mover that is considering joining a trade association to give me a call. I am happy to discuss AIM and what it can do for your business, as well as any input you may have. AIM is, after all here for all movers.

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Address:

The Association Of Independent Movers
Unit 4, Skills Centre,
Twickenham Trading Estate,
Rugby Road,
Twickenham,
TW1 1DG
Phone:0208 892 0369

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