The UK’s SME Businesses are suffering as a result of late payments. Covid-19 has fuelled the problem and many small businesses and medium sized enterprises are facing going bust.
So when is it time for SME Owners to act? At what point do Business owners say ‘enough is enough’. The pandemic has caused many Small Business owners to avoid pushing for payment. That is pretty understandable given the past turbulent 12 months.
Not getting invoices paid on time becomes a two-fold problem. One, your cash flow is affected. Two, you now have the problem of chasing up payment which incurs costs and resources in its self. Indirectly, the customer is costing you more by way of service due to your resources and time being allocated to the problem.
The saying in the Debt Collection Industry is ‘the older, the colder’ which is layman’s terms means, the longer the invoice goes unpaid, the less likely it will be paid at all. This is not conjecture, it is based on statistics as any accountancy firm will tell you.
In the past, Companies have often waited till they had large volumes of debts before recruiting a debt collection agency. Recent history shows this is no longer the case with Companies taking a more pragmatic approach and using Debt Collection Agencies ad-hoc also.
Over half of UK Businesses are suffering with exacerbated late payment as a result of covid-19. Maybe they should consider that it is time to hire a debt collection agency.
A recent survey conducted by Business Banking platform Tide found that on average, Small Businesses spent at least an hour and a half a day chasing unpaid invoices.
That is an average of 7.5 hours per week! Or 30 hours per month. That is 30 hours of somebody’s time per month, lost!! What is the true cost of that? Lost time, lost money and lost resources yet some firms still cannot see the benefit of working with a Professional Debt Collection solution.
With the continued easement of restrictions, many Business experts are saying now is the time to act.
Time to act, time for Recovery
As stated, the longer you leave an unpaid invoice, the harder it becomes to recover. Britain’s Business communities are slowly returning to some form of normality with the easing of lockdown measures.
A priority for Companies should be to act on unpaid invoices. An Effective Debt Collection will give cash flow an immediate boost.
Choosing a Debt Collection Agency is an important decision. Not all Debt Collection Agencies are the same so you need to apply due diligence.
The old saying is that choosing the wrong service will be worse than choosing no service at all. Why? Not all services are the same. What appears to be cheap is never cheerful and claims of free debt collection usually come with pitfalls.
We have put together some tips for you to help find the best debt collection agency for your needs.
Act now or risk not getting paid at all
Businesses don’t lose customers just because they were required to pay their invoices. If your Small Business is owed money, don’t miss the boat and risk insolvency, act today.
The UK is home to some of the globe’s Top Professional solutions for Small Business Debt Collection and B2B Debt Recovery.
Many predict that Debt Collection Agencies have an important role to play in the recovery of the economy. Only time will tell how true that is.