Why is B2B Debt Collection Crucial for UK Businesses?

A recent report showed that over 63% of small businesses are battling late payment issues. However, this can be minimised with a proactive B2B debt collection service. The UK’s smallest businesses are at risk of dealing with non-payment of invoices, according to a report from Hitachi Capital Business Finance.

Other research shows that small corporations are quite often hesitant to take action when owed money for fear of alienating their ‘new’ customer. Or they think it will be extremely expensive. This reluctance to act was echoed in the Hitachi report, with only 30% of small businesses reporting that their invoices had been paid on time. These were due for payment by the start of June 2018.

The United Kingdom continues to suffer from a late payment culture, where businesses deliberately pay suppliers late (or not at all), and suppliers are hesitant before taking action. This is causing the meltdown of many small businesses as they struggle with cash flow issues and are unable to sustain their operations due to unpaid invoices.

Proactive Approaches to Late Payment Challenges

The cost of using a B2B debt recovery service is very minimal when compared to the old-fashioned and well-worn method of using lawyers. A professional and accredited business debt collection agency should act as an extension of your own credit control process and be easily called upon when there are instances of late or non-payment.

Not all B2B debt recovery agencies are the same. Unfortunately, there are still many unprofessional and rogue debt collection agencies in the UK. However, a few simple acts of due diligence will confirm their professionalism. Here is a story in the Daily Mirror of a small business that used a rogue, unlicensed debt recovery agency in England and were ripped off over £20,000. Read the full Daily Mirror article.

Choosing a debt recovery firm to work for your company is like employing a new member of staff. You should apply due diligence and do your research. The agency you use will be an ambassador for your business, so you want peace of mind they will act professionally at all times and do their utmost to recover your debt.

UK’s No1 for B2B Debt Collection

At Federal Management, we have helped thousands of small businesses across the UK recover money in a professional and expedient manner. We provide a fully inclusive service that has no hidden costs. This includes collection officers’ visits to premises and even insolvency action and proceedings if necessary.

If your business is owed money, speak to our friendly new business debt recovery team today about your options. We provide a free pre-action consultation to ensure the debt is valid and recoverable, saving you time and valuable resources. Our award-winning agency is proudly accredited by the Financial Conduct Authority (FCA) and Credit Services Association (CSA), a testament to our commitment to professionalism.

Our award-winning services can help all types of companies, with specialist experience in all sectors from timber merchants to events management companies

Federal Management is the ONLY debt recovery agency with accreditation from the National Skills Academy. In addition, we hold accreditations from Investors in People, ISO:9001, and the CAI Accreditation awarded by the Credit Services Association.

In short, Federal Management truly embodies the motto “The Professionals Trusted by Professionals.”

Millions of pounds go unrecoverable every year in the United Kingdom, but it does not have to be that way. Working with a results-driven debt collection specialist will deliver and maximise your company’s profitability. Never underestimate the value a top debt recovery service can provide.