Debt Collection for Businesses – #1 Expert Advice
Debt Collection for Businesses – #1 Expert Advice
When invoices go unpaid and payments are missed, debt collection for businesses is a practice that is sought out by many.
It is no secret that the more robust a business’s credit control processes are, the fewer financial difficulties that will arise.
Credit control teams are no strangers to having to process, track down and chase up unpaid invoices.
In the modern business world, there are many ways that a business can enhance its credit control efforts, such as:
- Enhance your credit reporting efforts.
- Make sure your invoice system is efficient.
- Effective payment terms and conditions.
- Be flexible with the way that clients can pay.
- Maintain relationships with your clients.
You can read more about this in our helpful guide on “Business Credit Control Tips for 2022”.
Sadly, however, there are times when even the most stringent credit control system can have a debtor slip through the cracks.
GRENKE has reported that around 30% of businesses with late payments have linked this to redundancies.
No amount of chasing the debtor may be enough to get them to pay, and if this is the case, you need to understand the next steps.
This debt collection for businesses expert advice guide will help you to understand the options for when clients fail to pay.
Debt Collection for Businesses – Recovery Process
The debt recovery process is already perceived to be a challenging task for any business to undertake.
Business owners have a skewed perception of this due to misinformation on recovery times, success rates, what resources are needed etc.
In reality, all it takes to successfully recover unpaid invoices is the right expertise and knowledge.
Why should you have to jump through hoops to find the best way to collect debts that are owed to you or your business?
Many websites may try and beat around the bush, however, we have created this article to help those with a need for debt collection for businesses find the best option.
What Is the Solution for Debt Collection for Businesses?
When issues related to prompt payments or invoices due dates arise, the first normal step is to contact your client.
Communication should be carried out via email or phone calls, and should always be professional in tone.
If your business does not have a credit control team, this may take up internal resources which should be used elsewhere.
Small business owners, especially, may not have the time to search for the best debt recovery service.
This commonly results in either them abandoning the recovery or attempting to collect the money owed alone.
If communications with the debtor prove useless, you may wish to look into stricter measures such as legal action.
Whilst using solicitors or law firms has historically been a good way of recovering money owed, they are far from cost-effective.
Small business debts may end up costing a lot more to recover than is expected, which is far from productive.
For successful, low-cost debt collection services, it is recommended that you speak to a professional such as Federal Management.
Debt Collection for Business Owners – Federal Management
Federal Management is regarded as the UK’s most effective and efficient commercial debt collector.
Since 2004, our team of experts have helped businesses of all sizes in all industry sectors recover what is owed to them by their clients.
When debt collection for businesses is required, we understand how sensitive this situation can be.
As a result of this, we only act in the utmost professional way to ensure no relationships are jeopardised.
The last thing any logical business owner wants is to lose clients over the odd late payment.
Whether you have one or a portfolio of debts, we can provide you with success rates of 90% and above.
Get in contact with our team of debt recovery specialists today to kickstart the collection of your money.
Debt Collection for Businesses – FAQ
What is the best way to undertake debt collection for businesses?
Despite the fact there are several methods for recovering debts, it is best to use a professional debt collection agency. Federal Management has collected millions of pounds worth of business debts since 2004.
Can a business recover a debt from an individual as well?
Private and Commercial Debt Collection Agencies can recover debts from both individuals and businesses.
What happens if my debtor is based in another country?
If the company that owes you money is based overseas, we will use our international debt collection practices to recover this.
What is the business debt collection process?
When you instruct us to recover your debts, we will request all relevant information regarding the case. We then provide you with a FREE pre-action assessment which will outline how successful recovery will be.
What is the cost of business debt collection?
The cost of debt collection for businesses is based on the circumstances of the debt in question. We provide our clients with a low-cost service, meaning no damage to their cash flow.