Debt Recovery for Plant Hire companies - CPA | The Credit Protection Association

Debt Recovery in Plant Hire

Looking at the corporate recoveries reported since our last blog, I noticed that a quite a few of the plant hire companies we work for were reporting lots of recoveries.

A Plant hire company in Manchester reported five commercial debts as paid in full. Four of the debts were “only” a month overdue and it is interesting that all of those debtors paid on the first letter/email we sent to them. The other debt was invoiced in 2016 and we had to go through the entire process all the way up to the final demand before the debt was paid. It only underlines how important it is to get the account passed to us sooner or later.

A plant hire company in East Sussex likewise reported payment in full on four debts they had passed to us. The invoices were all raised in March, and had been passed to us at the beginning of June after the debtors had ignored their own inhouse credit control procedures. All four debts were paid within a week of CPA being instructed. It demonstrates the power of using a third party to instill urgency in your customers payment practices.

Another company in West London, near Heathrow, again passed us a number of accounts that had been invoiced in February and March. It is interesting to see that they were all paid within a week of The Credit Protection Association being asked to chase payment. I am sure all these debtors had been planning to make payment all along and it had nothing to do with CPA *wink, wink*! We are happy for the customers to maintain that and for the goodwill to be retained between them and our clients.

One would suspect that Plant Hire companies would be dealing mostly with construction companies and while there are a number of those among the debtors, it is interesting to see how diverse their customers are. Looking at the debtor lists, we see they also deal with other hire companies , with engineering companies, transport companies, manufacturers, facilities management companies, shop fitters, storage companies and a myriad of others.

Collecting debts from construction companies is notoriously difficult. The industry is known for it’s tight cash flow and difficult payment practices. We at CPA have over 100 years experience in dealing with these issues (both as a company formed in 2014 and also our board of directors alone has over 100 years of combined experience in the industry, not to mention the vast experience of our staff). One could write a book on the excuses and techniques employed to avoid payment. Why not let us use our name and our experience to help you over those excuses and get the money that you worked for, to where it belongs, in your bank account.

James Salmon 7/6/2017