How to prepare a debt for collection: the evidence that proves it

Collecting a debt is the easy part when you can prove it. When you cannot, a customer who has been ignoring you suddenly remembers a problem with the work. An agency will ask for your paperwork before it makes contact, and a court will ask for it later. It is much better to find the gaps now, while you can still fill them.

This guide is about what each piece of evidence proves, not just what to gather. For the basic handover list, see what to have ready when you hire a debt collector.

The four things you have to show

Every unpaid invoice comes down to the same four questions:

1. What was agreed? The price, the scope and the payment terms.
2. Did you do it? The goods arrived or the work was done.
3. Did they accept it? Or at least, did they not object when they had the chance?
4. Is it still unpaid? After credits and part payments.

Each document you hold answers one or more of these. If one of the four has nothing behind it, that is where a debtor will push.

What proves each one

What was agreed. The signed contract is best, but it is not the only thing. Accepted quotes, purchase orders, an email saying ‘go ahead’ and your standard terms (with evidence the customer was sent them) all help show it. Make sure the payment terms are visible somewhere, because they set the due date and underpin any claim for interest.

That you delivered. For goods: a signed delivery note, courier tracking with a signature, or a photo at the door. For services: timesheets, signed-off milestones, reports sent, or an email thread showing the customer used what you made. For ongoing work, a dated log of what was done and when is far more convincing than a list of invoices.

That they accepted it. Silence helps you more than most creditors realise. If the customer received the work and the invoice and raised nothing for weeks, say so in the timeline. Better still is anything where they say it is coming: ‘we’ll pay at month end’ is good evidence that the customer did not dispute the debt. Our guide on promises to pay that are never kept explains how to record them.

That it is unpaid. An up-to-date statement showing every credit and part payment. Get this wrong and the whole file loses credibility, so reconcile it before you send anything.

When the paperwork is thin

No written contract. Build the deal from what exists: the first enquiry, the quote, the emails, messages that confirm scope. If the whole thing was agreed on a call, write down what was said and when while you still remember it, and send the customer a short written confirmation if you have not already.

Terms you never sent. Your small print is hard to rely on if the customer never saw it. Say so honestly and lean on the invoice and the conduct of both sides. Fix it for new customers, and see payment terms that stop customers paying late.

Work that was changed along the way. Keep the variations. A scope that grew by email is fine, but only if the emails are in the file.

The identity problem

The most common gap has nothing to do with evidence of the debt. It is who owes it. An invoice made out to a trading name is not a legal entity. For a company, find the registered name and number on Companies House. For a sole trader, the individual’s full name and address. Chasing the wrong party wastes the weeks you could have spent collecting, and if the company has been dissolved or is insolvent the route changes, as our guide on dissolved and insolvent debtors explains.

Build a one-page timeline

Put this on top of the file. One page, in date order:

• The date the deal was agreed, and how.
• The date of delivery or completion.
• The invoice number, date, amount and due date.
• Each chase: date, method, and what the customer said.
• The amount outstanding today, and who the debtor is.

An agency can read this in two minutes and know whether the debt is strong. It also forces you to see where the gaps are before anyone else does.

Deal with any dispute first

If the customer has raised a problem, put it in the file with your answer. A dispute that is acknowledged and answered is manageable. One that is hidden tends to appear at the worst moment. If part of the invoice is not in dispute, say so, and see what to do when a customer disputes the invoice.

Keep it in a form you can send

• Save everything as PDFs or images with the dates visible.
• Export email and message threads in full, not selected lines.
• Name files in order (‘01 quote’, ‘02 purchase order’, ‘03 delivery note’) so nobody has to ask which is which.
• Keep the originals. Never edit a document to tidy it up.

Then decide the next step

With the file in order, the usual next steps are a letter before action and, if that is ignored, an agency. If you want to see how agencies compare for a debt like yours, you can compare vetted UK debt recovery agencies on Collect Compare, with names hidden until you choose, or let us match you. It is free for creditors: the agency you choose pays for the introduction, and no agency can pay to rank.

This is general information, not legal advice. What counts as sufficient evidence depends on your contract and the debtor’s circumstances, so take advice on your specific case.