Posted by FedMan on March 20th, 2017

Debt Collection for Small Businesses

Small businesses and sole traders rely on a steady inflow of cash from their customers to remain afloat. All it takes is a few customers to start dragging their heels on payment and a small enterprise can find itself unable to meet its own obligations.

So, if you are in this situation yourself – what can you do?

You may not have the time or resources to chase your clients for payment and would you really want to if you could? It’s confrontational, stressful and not everyone is cut out for it, especially if that client is intent on refusing to pay.

However, you should not lose any sleep over it as there is a solution to the problem. If you get no response to your ‘final letter’ then maybe its time to take a positive action to remedy the situation.

Debt Collection Agencies DCA

A specialist commercial debt collection agency (DCA) can take the strain for you and recover owed monies on your behalf. Acting as a representative of your company, a collections officer can apply the right kind of pressure to a debtor to achieve your goal in a professional and non-aggressive manner.

Low, Fixed Cost

A reputable DCA will usually only charge between 6-20% of the total amount owed and the commission will only need paying once the debt has been recovered. Agencies do vary however, so this is not always the case. We would absolutely recommend that you establish this with the firm you are instructing before any work is carried out to avoid any confusion.

Core Business

Free of the worry of having to carry out this work yourself and kept updated throughout as the progress of the collection, you can concentrate on the thing that makes you money – getting new customers and providing the services you are paid for.
Modern Collection Techniques

If you do your homework on finding a reputable and accredited agency with positive reviews from past customers, then you can rest assured that no scare tactics or intimidation is used in retrieving your money. Firms worth their salt simply don’t work like that anymore. They understand they are representing you and would not do anything to harm your reputation never mind their own.

If you find yourself in this position, struggling to stay ahead of the curve and feeling like there is nowhere to turn, then you should seriously consider employing a Debt Collection Agency.

It could save you a lot of time, stress and money. The fact of the matter is that taking no action at all can result in serious financial difficulty.

No small business has ever lost custom simply because they requested payment.