Debt Collection for Small Businesses

Key Points:

• Debt Collection Agencies (DCA)
• Low, Fixed Cost Debt Collection
• Core Business
• Modern Collection Techniques
• Choosing the best agency providing Debt Collection for Small Businesses
  • Are they Regulated by the Financial Conduct Authority?
  • Customer Feedback
  • Their Field of Expertise

Small businesses and sole traders rely on a steady inflow of cash from their customers to remain afloat Debt Collection for Small Businesses has a very important role to play. 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 positive action to remedy the situation.

 

Debt Collection Agencies (DCA)

A specialist Small Business 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.

A Small Business Debt Collection Agency specialist will provide a low cost and transparent service that will not cost the earth but will deliver a Professional Debt Collection solution both on a short term and long term basis.

 

Low, Fixed Cost Debt Collection

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 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.

It is an all too familiar scenario that a Small Business owner can end up spending more of their time chasing non paying customers than focusing on those customers who value their worth and services.

 

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 for Small Businesses 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 so take the first positive step towards recovering your money and speak with our debt collection for small businesses specialists today.

 

 

Choosing the best agency providing Debt Collection for Small Businesses

Searching for “the right” debt collection agency can often be a challenge in itself, as a quick search through Google will give you literally hundreds of results.

So, how do you know what to look for when searching for a debt collector?

The key points to look out for are:

 

1. Are they Regulated by the Financial Conduct Authority?
The first and best question to ask, the best debt collection agency for any business (not just Debt Collection for Small Businesses) is one that is regulated.

A regulated debt collection agency is the best choice for collecting a debt for a number of reasons, the key points being:

• They won’t damage your relationship with the debtor – and important factor in Debt Collection for Small Businesses
• They operate well within the boundaries of the law, ensuring a fully professional service
• They are the most effective means of recovering a debt
• You will have the leading experts in the debt collection field handling your claim

Federal Management, for instance, is regulated and authorised by the Financial Conduct Authority, and as a result our client’s benefit from all of the above, as well as a 90% recovery rate on undisputed claims.

2. Customer Feedback

As they say, “the proof is in the pudding”! Try to look for a debt collection agency that has a lot of positive client feedback.

Federal Management is the UK’s No1 rated agency for Debt collection for Small Businesses. You can read our client’s feedback on our Federal Management Reviews page.

3. Their Field of Expertise

Many businesses offer debt collection for small businesses as part of a wider range of services, whilst this may not seem like a negative, it may mean that their focus lies in other areas.

Federal Management specialises in debt collection for small businesses as well as larger or internationally based companies.

One of our best clients commented:

“It has been a great success in working with this company over the past few years. Everything is done efficiently and the amounts recovered have regularly exceeded all our expectations. Would heartily recommend Federal Management for any business debt recovery.”

Posted on March 15, 2018