UK Companies are struggling with their B2B Debt Collection according to recent research. Over sixty one per cent of Businesses have failed to recover debts owed to them for a wide range of issues including outdated customer data and email addresses.
The research conducted by Debt register has revealed that reduced business cash flow has highlighted the incompetency’s of staff to accurately maintain and manage customer data.
Small Businesses and large businesses alike have been left unable to recover overdue debts because key contact details have not been updated over time. Since the pandemic, key contact details have often changed but failed to be updated on companies systems rendering b2b debt collection efforts fruitless.
Very often, Companies do not have adequate updating procedures within their Credit Management processes to refresh and check data. For small Business owners, they simply do not have the time to constantly update minor details such as new email addresses or new points of contact.
Simon Harrington from the UK Debt Collection bureau commented “It could be that many businesses simply do not realise there is a problem. B2B Debt Collection is a difficult challenge for many businesses and this is why they outsource it to small business debt collection specialists like Federal Management”
“Simple and regular monitoring of company held data for key payment contact can help reduce cash flow issues. It seems a logical process but many large companies simply to not have adequate procedures in place for such”
“Emailing an invoice to the correct email for instance can then flag up the invoice as being unpaid when simply it is an incorrect contact data issue”
“Regular cleansing of data or purging outdated contact data could potentially save larger companies thousands in b2b debt collection fees. Also, ensure that cash flow and profits are kept to a maximum”