Debt Collection Agencies could help save thousands of Small Businesses in the UK it is claimed. Almost 500,000 Small Businesses and SME’s in the UK are facing the real prospect of going bust.
History shows that taking professional debt collection action can help save the number of Small Businesses from going bust.
Recent reports and research make for very bleak reading for the country’s Small Business community. A tidal wave of unpaid invoices is causing a chain of ill effect on the economy. As recent as 2014, the Federation of Small Businesses (FSB) found that the non payment of Business debts caused the death of around 50,000 businesses alone.
Last week, a report from accounting software firm Xero showed that Small Businesses are waiting an average of 29.9 days to have invoices paid. This represented the longest for invoice payment since September 2020.
The FSB has issued fresh warnings that nearly half a million Small Businesses are on the brink of collapse and called for government support to them them.
Rising energy bills, increasing wages and further delays in Businesses getting invoices paid are creating a major problem. Price inflation has hit 9% which is the highest in forty years. A worsening invoice late payment problem for Small Businesses is the last thing that is needed.
A hike in Debt Collection had been predicted in April with the end of Insolvency restrictions for Companies but it seems some small businesses are still reluctant to take action.
Debt Collection Agencies have a key role to pay
Professional Debt Collection Agencies help fuel the UK’s economy by recovering millions of pounds every year. The industry’s main and only trade association is the Credit Services Association.
Thousands of UK Businesses regularly turn to Debt Collection Agencies for support when faced with Business customers that have not paid their invoices.
An effective debt collection service can very often help make of break a company. Unpaid invoices are a long standing thorn in the side of the UK’s Small Business world. An accredited Business Debt Collection Agency can help boost Business cash flow.
The well trodden path of expensive legal action is a thing of the past for many. Some of the biggest companies in the UK now work partner with Debt Collection Agencies to maximise profitability.
Whilst maintaining profits is the objective for some, staying afloat is the priority for many more. Debt Collection for Small Businesses has a critical role to play, even more so.
Review platforms such as Trustpilot offer a valuable insight into the Professionalism and integrity of a Debt Collection Agency. The leading firms have years worth of verified reviews that help instructing parties ensure they are working with a Professional Debt Collection Agency that will not harm their brand or reputation.
Government support for Small Businesses
Many have called upon Government chancellor Rishi Sunak to do more to help Small Businesses. With billions pumped into support measures during the pandemic, any support given is expected to be minimal.
A £15bn support package to help people through the cost of living crisis was announced only a couple of weeks ago. The government will be limited in what it can do to offer financial support to Small Businesses given the outlay in the past two years in relation to the pandemic.
Survival of the fittest almost seems to be the only way forward for many small businesses as they struggle to overcome this latest challenge in the financial aftermath of the pandemic and brexit. Many Insolvency experts had previously warned of a tsunami insolvencies and the current figures suggest they may have been correct is their predictions post covid.