Holder Hire is head quartered in Essex with depots in Felixstowe and Bristol. They specialise in the sale, lease and hire of shipping containers and container road trailers.
The equipment on hire challenge
A National haulage contractor had been regularly hiring containers and trailers from Holder’s Tilbury and Felixstowe depots for 18 months. During this time invoice payments were always later than terms, but the company had a good credit rating and was not deemed to be high risk. As time went on the length of time between payments steadily increased from 35 days to over 70 days and the customer exceeded their credit limit. Requests for payment were ignored forcing Holder to suspend supply and request the immediate return of equipment on hire.
The process of debt collection
We issued the debtor company with a demand letter on the afternoon we received the instruction and copy invoices from Holder. The demand requested full payment of the outstanding account of £15,484 plus late payment compensation and interest charges. Despite the demand clearly explaining the consequences of legal proceedings, payment was not made within 7 days as requested.
A final demand was issued allowing the debtor a further 7 days to make full settlement. The final demand explains to the debtor that if they do not pay, 14 day pre-action protocol will have been completed and proceedings can then be issued.
We made telephone contact with one of the directors of the debtor company 2 days after we issued the final demand. After forcing home the seriousness of the situation and the fact that legal action and its consequences were inevitable if urgent action was not taken, we received assurances that the account and late payment charges would be settled as soon as possible.
The director was true to his word and the following day full payment of the account and all charges was made by bank transfer.
Another fast result
This 10 day recovery is a good example of how the vast majority of cases are settled, quickly and in full. Usually a debtor will pay up when they are contacted by Advocate and realise they can no longer ignore payment. Over 60% of cases are paid in full within 7 days and a further 25% of cases are paid in full within 14 days.