Business and Industry Experts are sending out the message that Business owners need to start using a Debt Collection Agency to help boost the UK’s economic recovery.
Now that the covid storm seems to be dissipating, many fear that businesses will fail due to the lack of proactive action to collect unpaid and overdue invoices. According to UK Insolvency Experts R3, nearly 25% of companies go out of business due to non-payment from customers.
The more surprising fact in relation to this is mainly due to Businesses leaving it too late to chase unpaid invoices or not even chasing payment up at all. Statistics show that approximately 80% of Businesses are owed money from their customers.
Debt Collection Action must be taken
The major factor that cannot be ignored by any Business is that late payment of invoices must be acted upon or Insolvency is a very real threat.
Creditors can be unforgiving and in the modern harsh world of commerce. A pragmatic and tenacious strategy is needed to meet the problem head on.
Using a Debt Collection Agency is a growing solution to the problem of non-paying customers however not all Debt Collection Agencies are the same. It is important to do your research and check debt collection agency review platforms such as trustpilot or even google my business pages.
If your customers are struggling financially or facing insolvency, you need to address this immediately. Goodwill does not pay staff wages or your bills so urgent action should be taken or you may get paid nothing at all.
Professional Debt Collection is a Viable Option
Some businesses can be hesitant of using a firm of debt collectors. This is largely in part due to lack of knowledge about the industry in its current form.
In the UK, a Professional and licensed Debt Collection Agency will be highly professional and be a cost-effective solution to unpaid Business invoices.
Leading UK Business Debt Collection Agency Federal Management report that less than 1% of the b2b Debt Collection cases require legal action which is a far cry from the days of old.
Likewise, Frontline Collections who are the UK’s top Personal Debt Collection Agency report similar figures for their clients which range from Small Businesses to Private Individuals.
There is a selection of niche and specialised DCAs operating. Working with the right specialist that has vast experience of your industry will greatly improve the overall outcome of using a debt collection agency.
A Professional Debt Recovery company should be seen as a viable solution for non-paying customers.
One of the major problems of ‘chasing unpaid business invoices’ is the amount of time spent. This is a hidden cost associated with your Business being owed money. Time spent on the non payers could be spent on the do payers so the whole situation is counterproductive.
It is said that “Choosing the wrong Debt Collection Agency is worse than choosing none at all”. Partnering with a Professional and reputable DCA will reap major benefits over time.
All that glitters is not gold, beware of Debt Collection Companies who are not accredited or have a lengthy trading history. Debt Collection Agencies in London are said to boost the Capitals economy by millions of pounds. Agencies like Frontline Collections and Federal management lead the way.
Take swift action
Procrastination is a negative action so speak to some experts today. Your unpaid invoices will not collect themselves so using a debt collection agency could just be the key to unlocking a rise in your profits.