“Take action to collect owed Monies”
Experts are sending out the message to take action to “Collect owed monies or put your company at risk”.
More than ever, businesses are failing due to the very solvable issue of unpaid business invoices. According to R3, a leading UK trade insolvency trade organisation, almost a quarter of firms that went out of business in 2016 did so as a result of delinquent customer invoices.
The surprising fact however, is that part of this is due to companies either leaving it too late to chase the invoices or in some cases not even chasing them at all.
One factor that cannot be ignored by any company planning a long and fruitful existence is that late invoices must, in all cases, be chased, for the sake of you and your business.
Are your creditors going to give you an indeterminate amount of time to pay your invoices to allow you to give your clients that same grace? Almost certainly not. So, in order to keep your company solvent, you have to do everything you can to recover monies owed to you.
If your debtors are struggling or on the way to becoming insolvent, then time is of the essence. It may sound heartless, but you must try and recover your funds before insolvency occurs, because once it has, you have essentially lost your money.
Debt Collection a Viable Option
A lot of businesses are hesitant when considering employing a debt collector, in part down to ignorance of what they actually represent in the modern era and as a result are missing out on an extremely efficient body of professionals.
Far from being the paid thugs that is typically the image a lot of people have when discussing collection officers, a registered and accredited debt collection agency (DCA) will be very professional, approachable and business like to both you and your debtor.
There are also a range of different types of specialised DCAs in existence that have a particular depth of experience in private debts, commercial debts or debts relating to specific industries and fields. Working with the right specialist for your line of work will greatly increase your chances of reaching a successful conclusion.
Ultimately, not acting to halt the demise of your business as a result of an issue that can be resolved is your prerogative, but seems such a shame.
One of the key aspects of ‘chasing unpaid invoices’ is the amount of time spent. This is the indirect hidden cost associated with being owed money. Time spent on the non payers could be spent on your most important customers, the ones that pay and have respect for the service you provide.
It is said that “Choosing the wrong Debt Collection Agency is worse than choosing none at all” and this is very true. The success of partnering with a DCA is very much on the choice you make.
If some DCA is claiming the world and things that are just too good to be true, then they probably are. Reputations are built on what has been done and talk is cheap as they say.
Take action today
Procrastination is a negative habit so make the change today. Positive thinking is all well and good but if you have been experiencing ‘false’ promises of payment, you need to take action.
Have a friendly chat with our New Business Team and you may be pleasantly surprised at what is we offer. Most importantly, do not leave it until it’s too late or you will lose your money and possibly your business for good.