Litigation Trends
The statistical evidence from the Lord Chancellor’s Department shows that the number of County Court summonses issued each year has declined over the last few years.

Creditors are obviously taking a much more selective approach to using litigation as a tool for recovery of debt. This of course goes hand in hand with an increasing use of winding up / bankruptcy procedures.

‘Front end’ collection is developing rapidly. In particular, the demand for telephone collection services is growing (we have recruited our own specialists to meet that demand).

Out Sourcing
A number of clients are also outsourcing the collection of their sales ledger to us at a much earlier stage. The benefit to clients is that they save resources and their credit control team are then able to focus their skills on credit assessment and monitoring larger accounts. Clients also benefit from agreeing a fixed monthly fee with us so that they can budget in advance for all their debt recovery costs.

Recession
Evidence of an emerging recession continues to grow. The number of winding up and bankruptcy petitions being issued is increasing.

This time around, the recession appears to be rather more selective in its effect. Manufacturing companies and specialist sectors such as the printing industry are obviously being hit much harder so far. In contrast, the construction industry, which has experienced difficult times for many years, appears, at the moment at least, to be less affected by the downturn in economic activity.

As the recession bites, creditors will need to review credit terms on a regular basis to spot failing companies and will need to respond very quickly if they are to recover their debt.

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