B2B Debt Collection NZ.
You Did the Work. Now Get Paid.
Specialist commercial debt recovery for NZ businesses. Letters of demand, direct debtor contact, credit bureau listings and statutory demand preparation. Commission of 15-25% on what we actually recover. You only pay when you get paid.
Margate Group is a business consultancy specialising in commercial debt recovery, not a law firm. Where court action is required, we work with partner law firms.
Tell Us About the Debt
Send us the details and we'll come back with an honest view of what's recoverable, how we'd approach it and the commission. No commitment.
- We respond by the next business day
- Free 30-minute review, no obligation
- Commission confirmed in writing before any action
Commercial Debt Recovery Done Right
A debt collection partner that means business. We pursue overdue B2B debts on your behalf by phone, SMS, email and letter. Firm but professional, so you recover what you're owed without torching goodwill.
What's included in your debt collection service
15-25% commission on recovered funds. No upfront fees. Rate confirmed in writing before action begins.
Letters of Demand
A formal demand from a recovery firm carries weight a creditor's own reminder doesn't. It states the amount owed, the deadline and what happens next. Many debts get paid right here.
Direct Debtor Contact
We pick up the phone. Real conversations uncover whether the debtor can pay, won't pay or needs a structured plan. Then we act accordingly.
Credit Bureau Default Listing
Defaults loaded with Centrix, Equifax or Illion. A bad credit listing affects the debtor's ability to obtain credit, trade terms or finance for up to five years.
Statutory Demand Preparation
For company debtors, a statutory demand under section 289 of the Companies Act creates a 15 working day window before liquidation can be applied for. The threat focuses the mind quickly.
Structured Payment Plans
When a debtor genuinely can't pay all at once, we draft binding instalment arrangements with default clauses that protect your position if they fall behind.
Legal Escalation
Where recovery requires court action we work with legal partners. All costs quoted upfront. Nothing proceeds without your approval.
Late Payments Are Costing You Real Money
Stop being your customer's overdraft. Every day a debt goes unpaid, it gets harder to collect and the hit to your cashflow compounds. The numbers are stark.
Sources: Commercial Collection Agency Association (CCAA); Atradius Payment Practices Barometer; National Association of Credit Management (NACM).
Why a Specialist Recovery Firm Beats a Big Agency
Most NZ business owners default to the names they've heard of. There's a better way for B2B debts. Here's what changes when you work with a specialist.
What they typically offer
-
Volume-driven processingYour file is one of thousands. Decisions made by junior staff working scripts.
-
Trust accounts and payout delaysFunds collected sit in their account. You wait for the payout cycle.
-
Minimum debt sizesSmaller debts often refused or deprioritised because the unit economics don't work.
-
Aggressive blanket tacticsReputational risk if a debt is misjudged. Damaged customer relationships.
-
Locked-in contractsSign-up fees, minimum terms, ledger lock-ins.
What you get with us
-
One person on your fileYou speak to the same person every time. They know your debtor and your situation.
-
Debtor pays you directNo trust account. No payout delay. Money lands in your account the moment they pay.
-
No minimum debt sizeWhether it's $1,500 or $150,000, we take a proper look. If it's worth pursuing, we'll tell you.
-
Firm but never hostileMost debtors continue trading with our clients after settlement. Recovery shouldn't burn the bridge.
-
Pay-as-you-go, file by fileNo sign-up fees, no minimum terms, no ledger lock-in. Use us when you need us.
The pitch in one line
Big agency rigour. Boutique attention. Direct payment to you. No recovery, no fee.
Three Steps to Getting Paid
Book a free 30 minute consultation. We get to work the next business day. You get paid direct, with no payout delays.
Free 30 Min Consultation
Tell us about the debt, the debtor and what documentation you have. We come back with an honest view on what's recoverable, the likely timeline and our commission rate. No commitment.
We Get to Work
First contact with the debtor by the next business day. Phone, SMS, email and letter, escalating on a defined timeline. We negotiate, list credit defaults or prepare statutory demands as the situation calls for. You're kept updated throughout.
You Get Paid Direct
The debtor pays you, not us. No trust account. No payout delay. We invoice our commission separately, only after the debt is settled. No recovery, no fee.
A typical recovery, week by week
Got an overdue debt?
Book a free 30 minute consultation. No commitment. No upfront fees. We only get paid when you do.
B2B Debt Recovery for NZ Businesses of Every Size
From sole traders to established companies, we recover commercial debts for businesses across New Zealand. Single overdue invoice or a full debtor ledger, we can help.
We focus exclusively on commercial (B2B) debts. We do not collect consumer debt.
Book Free Consultation$14,200 recovered in 11 days.
An Auckland subcontractor was owed $14,200 by a main contractor on a completed fit-out. Three months of internal follow-up had gone nowhere. The debt was lodged with us on a Monday. First contact with the debtor went out the next business day. A payment commitment was secured within a week and the full balance landed in the client's account on day 11.
Names and identifying details withheld for client confidentiality.
Trusted by Businesses Across New Zealand
Real outcomes for real business owners, from Northland to Southland.
Margate Group provided a professional and efficient service from start to finish. Communication was clear throughout the process and their team was responsive, knowledgeable and easy to deal with. They handled everything promptly and kept me informed at every stage, giving me confidence the matter was being managed properly. I would not hesitate to use their services again and would happily recommend them to others requiring commercial support.
I run a small freelance business and needed proper Terms of Trade after a client didn't pay on time. Margate Group made it easy, set me up with clear terms and helped recover the overdue invoice. It took a weight off my shoulders and I'd recommend them to any freelancer wanting things sorted without the big price tag.
As a SME owner, getting the right advice isn't always easy. Margate strike the perfect balance of professional, direct and genuinely caring. From contract negotiations to tricky customer non-payment disputes, they've consistently helped me achieve the right outcome. Highly recommend.
Know Your Options
B2B debt recovery in NZ: when to act, how it works, and the tools that actually get you paid.
Chasing unpaid invoices is one of the most common challenges facing NZ small businesses. Around 45% of invoices issued by Kiwi small businesses are paid late, costing the small business economy an estimated $456 million a year. This is the plain English guide to how commercial debt collection works in New Zealand, when to hand a debt over, what credit bureau listings and statutory demands actually do, how fees are structured, and how to make future debts easier to recover.
When should I hand a debt over to a collection agency?
The right answer is usually sooner than you think. Xero's Crunch report found that 45% of invoices issued by Kiwi small businesses are paid late, with 8% paid more than a month overdue. Once a debt is genuinely aged, recovery rates fall sharply. Most recovery agencies will tell you the same thing: the longer you wait, the less you get back.
A reasonable rule of thumb for most businesses is to follow up internally for the first 30 days after an invoice goes overdue, with at least one written reminder and one phone call. If you haven't received payment or a credible repayment plan by day 30, the matter has moved past internal AR and into a recovery problem.
At that point, handing it to a third party does two things. It signals seriously to the debtor that the situation has escalated, and it frees your team to focus on customers who are paying you rather than ones who aren't. Recent research from GoCardless found over a quarter of NZ small businesses spend up to an hour every week chasing late payments. That time has a real cost.
If an invoice is 30 days overdue and your reminders have gone unanswered, lodge it. Every additional week reduces the realistic recovery rate. The earlier a third party gets involved, the more leverage there is to negotiate payment before the debt becomes commercially worthless.
How does the debt collection process actually work?
Commercial debt recovery follows a structured escalation. The first step is a formal letter of demand on the collector's letterhead, which often resolves the matter immediately because the debtor knows the situation has been handed off to a professional third party.
If that doesn't produce payment, the next step is direct contact by phone, SMS and email to engage the debtor, understand why they haven't paid and negotiate a resolution. Many debts are recovered through this conversation alone.
Where the debtor refuses to engage or refuses to pay, the matter escalates to credit bureau default listing. A listing affects the debtor's ability to obtain credit, finance and trade terms for up to five years and is a powerful pressure lever.
For company debtors with undisputed debts, the next step is a statutory demand under section 289 of the Companies Act 1993. This creates a 15 working day window before the creditor can apply to liquidate the company. It is typically the final pre-court step.
What is a credit bureau default listing and why does it matter?
New Zealand has three nationally active credit bureaus: Centrix, Equifax and Illion. When a debt remains unpaid and undisputed, a collection agency can load a default against the debtor with one or more of these bureaus.
That listing remains visible to lenders, trade credit providers and other businesses for up to five years. It affects the debtor's ability to obtain finance, secure trade terms with new suppliers, get a business loan or in some cases even rent commercial premises.
For many debtors, the prospect of a credit listing is enough on its own to trigger payment. For others, the listing remains in place and creates real consequences over time. Either way, it is one of the most cost-effective pressure tools in the recovery process.
Listings must be accurate under the Privacy Act 2020. A debt that is genuinely in dispute should not be reported as undisputed, which is why a properly conducted demand process matters.
What is a statutory demand and when is it useful?
A statutory demand is a formal legal notice issued under section 289 of the Companies Act 1993. It applies only to company debtors (not sole traders or partnerships) and only where the debt is undisputed and is at least $1,000.
Once served, the company has 15 working days to pay the debt, enter into a payment arrangement acceptable to the creditor, or apply to the High Court to set the demand aside. If none of those things happen, the creditor can apply to liquidate the company on the basis that it is presumed insolvent.
That is why statutory demands are one of the most effective tools in the recovery toolkit for company debt. The threat of liquidation focuses the mind quickly and many statutory demands result in payment within days of being served.
They should only be used where the debt is clearly undisputed and the amount and identity of the parties are clear. Using a statutory demand for a disputed debt or as a debt collection tool when other remedies are available can result in costs being awarded against you. We assess each matter carefully before serving a demand.
Agencies that promise guaranteed recovery or push for statutory demands on every file regardless of fit. The right tool depends on the debtor, the debt and the documentation. We tell you honestly what will work and what won't before any action begins.
How is your fee structured?
Nothing upfront. We work on commission. A percentage of what we actually recover, so if we don't collect, you don't pay. Commission rates typically range from 15% to 25% depending on the age, size and complexity of the debt, and we confirm the exact rate in writing before we start.
The only exception is legal action, where court and legal costs apply. These are always quoted and approved by you first. Nothing proceeds without your sign-off.
Where your terms of trade include a recovery costs clause, it is often possible to pass collection costs through to the debtor, meaning you recover more of what you are owed. The MBIE has recognised this as one of the most practical levers a supplier has to deter late payment.
What can I do now to make future debts easier to recover?
The single most valuable thing any NZ business can do is have properly drafted Terms of Trade signed by every customer before credit is extended. Clear written terms make collection dramatically easier because you can point to a signed document that defines payment dates, interest on late payments, recovery cost recoverability and dispute resolution.
For larger trade accounts, a personal guarantee from a director or owner converts a corporate debt into a personal one if the company defaults. This is one of the most powerful protections a supplier can have and is standard practice in many industries.
PPSR registration protects your position over goods supplied on credit. If the customer becomes insolvent before paying, a properly registered security interest gives you priority over unsecured creditors.
Margate Group can help you put all three in place. Once they are in place, future recovery matters become much faster, cheaper and more likely to succeed.
The bottom line
Debt recovery rewards speed. The longer you wait, the less you recover. A professional third party with the right tools (letters of demand, direct debtor contact, credit bureau listings and statutory demands) recovers debts internal teams cannot. Done properly, it does not damage relationships. Done early, it preserves the value of what you are owed.
Sources
- Xero Small Business Insights, Crunch: Cash flow challenges facing small businesses (Part II), Accenture for Xero. xero.com
- GoCardless and Xero, Pursuing Payments 2025, YouGov survey of NZ and AU SMBs. blog.xero.com
- MBIE, Improving business-to-business payment practices discussion paper. mbie.govt.nz
Straight Answers to Common Questions
Honest answers about our B2B debt recovery service. No jargon, no spin.
Can't find what you're looking for?
Book Free ConsultationNothing upfront. We work on commission. Commission rates typically range from 15% to 25% of recovered funds, depending on the age, size and complexity of the debt. We confirm the exact rate in writing before we start, and if we don't collect, you don't pay. The only exception is legal action, where court and legal costs apply. These are always quoted and approved by you first. Where your terms of trade include a recovery costs clause, collection costs can often be passed through to the debtor so you recover more of what you're owed.
Big agencies are built for volume. Your file is one of thousands and you'll typically deal with a different person each time you call. Margate Group is built for relationships. You get a named contact who knows your file, decisions made in days not weeks, no minimum debt size and the same no-recovery-no-fee structure. For complex or sensitive matters where preserving the customer relationship matters, the difference shows up quickly.
Usually the opposite of what people fear. A professional, courteous approach from a third party feels routine. It signals your business takes its receivables seriously, nothing more. What damages relationships is months of increasingly awkward chasing from you, or aggressive tactics from the wrong agency. We're firm but never hostile, and many of our clients' debtors continue trading with them after the debt is settled.
Earlier than feels natural. Xero data shows 45% of invoices to Kiwi small businesses are paid late, with 8% paid more than a month overdue. The longer a debt sits, the harder it is to collect. Our rule of thumb: if an invoice is 30 days overdue and your reminders have gone unanswered, lodge it.
We make first contact within two business days of your debt being lodged, and most debts are resolved within 30 days. For tougher cases, credit bureau listing and statutory demand preparation typically resolve matters within 60 days. Older or disputed debts can take longer, and we'll give you a realistic expectation at the outset.
Commercial (B2B) debts throughout New Zealand. Unpaid invoices, contract payments, trade accounts and the like, from sole traders through to established companies. We don't collect consumer debt. Debts must be supported by documentation such as invoices, signed agreements or written terms of trade.
No. We take on small debts that bigger agencies won't touch, as well as five and six figure balances. The commission rate may vary with debt size and complexity, but every overdue invoice is worth a conversation.
The basics. Who owes you, how much, and since when. Copies of the invoices, your terms of trade or contract if you have one, and any correspondence about the debt. Don't worry if your paperwork isn't perfect. Lodge what you have and we'll tell you if anything's missing.
We deal with it head-on. Genuine disputes (a wrong amount, undelivered goods) get investigated promptly with you so they don't fester. Manufactured disputes used as stall tactics get documented and the recovery continues. Either way, you'll know within days, not months. Disputed debts cannot be reported to credit bureaus as undisputed under the Privacy Act 2020.
Yes, with your agreement. A realistic, documented payment plan often recovers debts that an all-or-nothing demand won't. We put every plan in writing with a default clause so if the debtor misses an instalment the full balance falls due.
Yes, if your terms of trade allow it. Where they do, we pursue those costs from the debtor. If they don't, we'll recommend wording for future contracts so you're covered next time.
Yes. We recover debts nationwide across New Zealand. Modern recovery work is conducted by phone, SMS, email and post, so the debtor's location is not a barrier. We regularly handle matters involving debtors in Wellington, Christchurch, Hamilton, Tauranga and rural regions.
You Did the Work.
Now Get Paid.
Recovery rates drop sharply the longer a debt sits. Every week you wait reduces what you'll get back. Book your free 30-minute consultation. No upfront fees. We only get paid when you do.
Free 30-min consultation
Lodge Your Debt Today
Tell us about the debt below. We'll review your file and come back with our honest assessment of what's recoverable. No commitment.
Margate Group is a business consultancy, not a law firm, and cannot represent clients in court. Court proceedings are handled by partner law firms.