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Recover Unpaid Fees from an Overdue Business Account

Recover Unpaid Fees from an Overdue Business Account

Recover Unpaid Fees from an Overdue Business Account

Overdue business accounts can create all sorts of cash flow related problems for both large and small businesses in the UK. Making sure that your clients pay on time is one of the most challenging balancing acts business owners have to perform.

On the one hand, they need to make sure that their business continues to grow and run smoothly. On the other, they need to ensure client relationships are kept healthy. Making sure both points are satisfied is the key to a successful business.

Every business owner knows that there are always situations where an outstanding business account becomes an overdue business account. Unpaid invoices are common and dealing with them quickly and in the correct manner is crucial.

There are 2 main parts of any robust credit control process. The first is taking steps to prevent any payments from being missed. The second is recovering any money that is unpaid and has slipped through the net.

Understanding what to do when confronted with an overdue business account is helpful. With this in mind, we asked our team of debt recovery experts to provide an insight into what businesses can do.

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Taking Steps to Prevent Overdue Business Accounts

The best way of dealing with debt is to stop it from existing in the first place. Taking as many steps as possible to ensure that all payments are made on time is a great move.

Anyone that has worked in an accounts team knows how busy life can be. For busy companies, keeping track of every payment is often a challenge. Modern accounting systems can take most of the stress away, alerting staff to potential payment issues before they arise.

Sending polite payment reminders to a client once the invoice has been issued is another good method. However, some companies are hesitant to do this as they are worried about badgering a client for payment.

You should always remember that being paid is just a normal part of running a business. You should never feel uneasy about asking for payment, especially once you have provided goods and services.

Implementing measures such as payment terms or late payment charges is also another good way to reward prompt payments. If a client is aware of their payment obligations, they will be more inclined to carry them out.

Can a Business Charge Interest on Overdue Accounts?

Charging interest on late payments and overdue business accounts is a common practice among UK businesses. Are you in a situation where a client has not paid you? This is most commonly after 30 days or 60 days past the original payment due date. If so, you could claim interest and compensation.

The standard rate at which interest can be charged is provided by the Bank of England base rate.

Recovering Overdue Business Accounts

Recovering an Overdue Business Account

If an outstanding account has become overdue, the next course of action is to begin the debt collection process.

Most businesses begin this by chasing the client themselves for a period of time. Your chasing should always be done in a way that can be recorded, such as an email or letter. If your client is still refusing to pay it is best to contact a debt collector.

Debt collection agencies are often regarded as the best way to recover an overdue business account. Federal Management, for instance, specialist in the collection of business debt.

It is a good idea to include a debt collection agency in your credit control process. By doing so you will have taken every measure possible to make sure payments are received no matter what.

If you are experiencing issues with overdue business accounts, speak to one of Federal Management’s debt collection experts now.

Recover Unpaid Fees from an Overdue Business Account | Get immediate help from our Experts

If you need help with the Recovery of Debt, our friendly team of Debt Collection Experts is happy to help you today,

SPEAK TO A DEBT COLLECTION EXPERT

Recover Unpaid Fees from an Overdue Business Account – Frequently Asked Questions

Can I take steps to prevent an account from becoming overdue?

You can take steps to reduce overdue payments by setting up robust payment terms. As well as this,  sending regular payment reminders to clients can help. If these measures are unsuccessful, you should contact a debt collection agency as soon as possible.

When should I contact my client for payment?

It is best to contact a client with a reminder 14 days after the invoice has been issued. If you have an overdue invoice, you should send a reminder the day after its due date. It is a good idea to make a record of any communication you have with your debtor.

What if my client is based in another country or time zone?

If you have a client based in another country, you should contact an international debt collection agency for assistance. They will possess the necessary skills required to recover a debt from overseas. Doing this can provide the best debt recovery costs available.

How long does it take to recover an overdue business account from a client?

Recovery times can vary depending on the circumstances of an individual case. Speak to a debt collection expert at Federal Management now for more information on recovery times.

What is the cost of hiring a third party like a debt collection agency?

There are many different types of debt, and each case has its own unique factors. Are you searching for a price on recovering an overdue business account? If so you should speak to a professional debt collection now.