Debt Collection, Debt Recovery, Debt Management, Credit Control or Collector Do You Know the Difference Between Them?

2nd July 2024 / Anita Pickersgill / No Comments

As a Credit Management and Debt Recovery specialist I often get asked if I do Debt Management or people think I do Debt Management and whilst I can help signpost you to the right place as an individual to get advice from the right people, I don’t do Debt Management.

I can help businesses better manage their creditor position by guiding them to negotiate payment arrangements whilst I work on improving the speed customers pay, minimise late payments, resolve disputes and improve their actual credit process in the business – often referred to as turnaround support helping you come out of the red and into the black literally.


💥 A debt management plan typically refers to consumers and individuals, it is a tailored strategy to help you repay outstanding debt and financial obligations without using a new loan. Typically, credit or debt counselling agencies work with creditors on your behalf to determine a debt management plan that fits your financial circumstances.

💥 Credit control aka management is the ‘proactive’ side of the receivables/sales process, which focuses on preventing bad debts, minimising late payments, and reducing credit risk. This moves into debt collection pursuing payment of debts that are overdue. So, getting the right credit control and process in place will naturally reduce the work done in collection. A Credit Controller can assess and review credit limits, resolve disputes, manage escalation and payment arrangements in often progress simple small value debts in Money Claims online.

A Collector is very different and literally make phone calls and issues chase letters/emails, scheduled in advance – they usually just chase payment.

💥 Debt recovery is the process of collecting payments from individuals or businesses that owe money to a creditor. This can be a time-consuming and difficult process, and often requires the use of specialised knowledge and techniques.

💥 Collection refers to a business managing and attempting to collect on debts owed by its customers in house for themselves.

💥 In contrast, recovery refers to the process of a third-party attempting to collect money owed to another creditor or business. There are a number of skills involved and a good understanding of pre action protocols and the late payment of commercial debts act is required.

There is a danger zone here, in so far as many will continue to try and chase themselves and often issue non-compliant demands, incorrect claim documents thinking that referring it to a third party may take longer or reduce profit.

The reality is the exact opposite, results are often obtained quicker with interest, compensation and costs recovered from the debtor in many cases. When you have 100% of noting which is what you have when you have not been paid then even payment less a commission cost is better than a bad debt!

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MCICM-MCICM-Credit Control/Debt Recovery 💖✔Keeping cash flowing** award winning ***Credit Processes** Dispute Resolution & Debt Recovery**** Speaker ** Control/Debt Recovery 💖✔Keeping cash flowing** award winning ***Credit Processes** Dispute Resolution & Debt Recovery**** Speaker **

Anita Pickersgill
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