The 3 Most Dangerous Myths about Debt Recovery.... and what to do about them


People believe strange things about the debt collection process.

Myth 1


The company that owes the money is going to do more business with us.

Why it’s a myth.
The belief here is that all business is good business, especially when it’s repeat business.

Why it’ dangerous
A company has a “good” client that is not paying on time for goods or services delivered. If the average monthly billing is €5,000, within 90 days they owe you €15,000. At this point the “good” client may pay €5,000 and roll-on for another 60 days bringing the debt to €20,000. Now your “good” customer has a choice, pay you or switch to another supplier, leaving you chasing the debt.

What to do about it.
Set out your credit terms clearly and stick to them. Don’t deliver more until you have been paid for the last delivery. Bad payers are bad customers who will burn you in the end.

Myth 2

If we push for payment the company might go out of business.

Why it’s dangerous
If a company is not paying its bills on time during a recession, there is a high probability that they are maintaining a high cash balance to keep the bank happy, at your expense. At some point creditors are going to get very unhappy and may all push for payment at the same time. If your invoices are part of this push, or if you are late in hearing about the demands of other creditors, your first advice may be a Notice of Liquidation. At the Meeting of Creditors, you may learn that the high cash balance has miraculously disappeared.

What to do about it.
Check StubbsGazette regularly to see if any other creditor has taken a Court Judgment against your customer. The listed amount may in some cases be small but you can use it as a clear, early indication of trouble to come and you should act immediately to recovery your money.

Myth 3

It’s not worth taking legal action.

Why it’s dangerous
If we develop a culture that allows companies to walk away from commercial debt, then we will by default, eventually reduce the available credit in the economy. Credit is the life blood of a growth economy. We need to encourage efficient companies that use credit properly within agreed credit terms and pursue those companies that do not.

What to do about it.
Advise your bad debtors that you will take legal action and follow through to judgment. As many commercial cases are un-defended, you can use fixed price legal services to minimise your legal costs.

Top Judgments Registered

11.11.2020

Urban Green Private Limited
Address: R/o Atkins Hall, River Towers, Lee Road, Cork
Amount: €734,547.90

10.11.2020

Thomas O'Brien
Address: Castlegrace, Clogheen, County Tipperary
Amount: €93,749.13

10.11.2020

Margaret O'Brien
Address: Castlegrace, Clogheen, County Tipperary
Amount: €87,979.01

06.11.2020

Sean Browne
Address: 24 Woodlands Avenue, Arklow, Co Wicklow
Amount: €38,094.60

Limited Company Notices

18.11.2020

ESERAM MEDICAL LIMITED
Resolved 17 November 2020 that the above named com...
Read More

18.11.2020

NIPPON RELAXATION COMPANY LIMITED
Resolved 17 November 2020 that the above named com...
Read More

18.11.2020

PEONIEMILL LIMITED
Resolved 24/12/20 that the above named company be ...
Read More

18.11.2020

RE FINANCING HOLDCO LIMITED
Resolved 24/12/20 that the above named company be ...
Read More

SEARCH OUR DATABASE PLACE YOUR DEBT WITH US SEND A DEMAND LETTER