Debt Collection for Wholesalers
The effectiveness of Debt Collection for Wholesalers plays a major role in ensuring a Wholesalers profitability. The United Kingdom has a large network of Wholesalers and Distributors employing over one million people and turning over tens of billions of pounds. The Wholesalers distribution network provides a link between manufacturers and independent retailers and caterers.
The key role of wholesale distributors is essentially to buy products in bulk (for cheaper prices than a small retailer could negotiate) then sell and distribute them to much smaller independent outlets and buyers.
Food and drink wholesalers alone supply more than 400,000 food service and retail firms across the UK with these ranging from schools to convenience stores and takeaways. As well as Food and drink, there are also many other types of wholesalers that have a big part to play in the UK’s economy.
As a wholesaler, we understand that you will be incredibly busy. Every increasing pressure on prices and margins does not make for an easy task but there are certain things you can do and smart decisions you can make to ease the strain of operating a Wholesale Business. Whether your Wholesale company is a large or Small Business, it is imperative that you maintain a tight reign on your credit control.
Controlling cash flow the right way
Since cash flow is the lifeblood of any wholesalers business, you will need to monitor it like a hawk ensuring a tight control. Unpaid accounts and invoices can mean missed opportunities such as purchasing new stock, new equipment or even new staff.
An efficient and dedicated credit control system will enable you to do this with minimum effort and keeping track of your DSO (Days sales outstanding) and you cash flow under control. It will also make for one less headache.
When a customer does not pay
So you have sent reminders and made phone calls but you have still not been paid, what should you do now. This is an area where everybody has an opinion. Hopefully you will have credit checked your customer initially but as we all know. There are some that just do not like to pay what they owe whatever the situation.
Whether it is a sole trader or a Limited company, there is a cost effective recourse for this scenario. At Federal Management, we have hundreds of years of combined experience in dealing with all type of wholesaler debts and have a long track record of success in Business Debt Collection for Wholesalers. We know the mindset of debtors and every trick and excuse in the book to avoid payment.
We have served the requirements of thousands of wholesale companies since 2004 and we very much know, using our services to recover your unpaid debt can very often be the difference between getting paid and not getting paid anything at all. A reliable Wholesalers Debt Collection solution will be a valuable resource to your credit control team and minimise any potential losses to your Business.
Typical Types of Wholesalers Debt Collection services we provide are:
- Electrical wholesalers & distributors
- Food & Grocery Wholesalers
- Wine & Alcohol Wholesalers
- Textiles & Clothing Wholesalers
- Drop shipping Wholesalers
- Sports and Manufacturing Wholesalers
- Computer Wholesalers
- Toy Wholesalers
- Jewellery Wholesalers
- Cosmetic Wholesalers
- Timber Merchants
The Wholesalers industry is worth billions to the UK economy but that massive value weakens when a Wholesalers does receive payment. The Wholesale industry needs the support of a Professional and ethical Debt Collection Agency to continue to grow. A Specialist Debt Collection Agency that serves the purposes of all types of Wholesalers can only be seen as a positive thing.
Using a Professional Wholesale Debt Collection solution is viewed as an effective measure when faced with a Business customer that has not paid. No Wholesaler Business needs that kind of customer so it is imperative that collection steps are taken to rectify the situation.
If you are a wholesaler, being part of a Trade Association can help you with facts and tips on how to prevent bad business debts from occurring. Trade associations such as the Electrical Distributors Association can be of great help.
Simple and smart solution
As you will be aware, the stress and frustration of being owed money is very counter productive. You will spend more time on the minority who do not pay than the majority who do pay. What we provide is a Professional and fully inclusive debt collection service that allows you to focus on the best part of your Business which is the ‘do pays’ allowing us to deal with the ‘don’t pays’ in a smart and cost effective manner.
At Federal Management, we understand the need to recover as much as possible whilst maintaining a Professional image. As a Multi Award Winning Company, we value our own brand as much as our clients and all communication with Debtors is always conducted in a Business like manner.
Speak to one of our friendly New Business Team today and start recovering your unpaid accounts and invoices the smart way. Call us now on 0333 043 4420 for fast free help and advice.