It is a common feature of most Businesses in the UK that at some time their cash flow will struggle due to customers not paying. But what do you do to tackle the problem?
It should be no major surprise to know that you certainly are not the only Business owner to be faced with this problem. It is a well documented fact that most SME’s have problems getting payment when they provide a service or product.
In fact, recently it was widely reported on the main UK Debt Collection News that approximately 80% of SME’s in the UK have problems with non payers with many going bust as a result of failing to adequately deal with the problem.
Non paying customers cost you your time, money and cause a real stress that can impact on your personal life as well as making you less productive in the workplace.. There is nothing more frustrating than when you have provided something in complete good faith, only for somebody to try and abuse that. Unfortunately, this is a paradigm of modern business, but one that does not necessarily have to hold you or your business back.
Professional Debt Collection Agencies in the UK are a modern and cost effective recourse that are readily used by companies across the United Kingdom and indeed across the World. As with any industry, it really does pay to do your homework and avoid the sharks that can lurk in the waters so choosing the right debt collection agency to act on your behalf is key.
Always be on guard against the amateur, cowboy ‘No win – No fee’ slogan because when something appears to good to be true, more often than not it is because it is. And when a Debt Collection Agency claims “Our service is risk free” think hard!
Course there is a risk – The risk of your business brand, the debt value and let us not forget, your legal liability for any action taken by any instructed Agency.
There is a far greater level of professionalism in the modern UK and most credible Debt Collection companies are accredited by the Financial Conduct Authority.
Employing a Debt Collection Agency (DCA)
You may not have considered instructing a Small Business debt collection agency to act on your behalf in recovering monies owed, because you may have thought it was maybe a little ‘heavy-handed’, but once the misconception of how a reputable DCA operates has been dispelled, it soon becomes apparent that it is possibly the best option available.
So, with that in mind, here are 6 tips on why a quality debt recovery service is the best option when addressing this spiky issue:
Tip 1 – No Collection – No Costs – Most debt collection firms operate on a basis that means if they do not collect, then you do not have to pay any collection costs. Compared with conventional methods of chasing payment, this is a very cost-effective way of resolving matters, as no expensive solicitors are involved.
For a Premium Debt Collection service, there may be an instruction fee which is can be claimed back on your behalf and results in a fully inclusive service with no hidden fees. You should also receive a much lower commission payable on collection.
Tip 2 – Businesslike, Professional Approach – The days of aggressive ‘strong arm’ tactics used to scare clients into paying are a thing of the past. Whilst being necessarily direct to achieve their goal in good time, a reputable collections officer will be compassionate and understanding to the debtor throughout the process.
Tip 3 – No charge per hour – Dealing with most collection professionals is extremely simple. There is no ‘fee earning’ and most will not charge ‘abortive fees’. There is an end goal and a usually commission payment of usually between 10-20% to the agency upon achieving the end goal – getting you paid.
Tip 4 – All Cases Considered – There is no snobbery in the debt collection industry. No matter who you are, if you run a legitimate business that is owed money, then your case will be taken on its merits.
Tip 5 – Experienced Collectors – A reputable and accredited professional collections officer will have been employed for their compassion, understanding and knowledge of how businesses operate. They are not paid thugs, rather an extension of your business and they will and should act accordingly.
Tip 6 – Speedy Resolution – In addition to being cost-effective, the work a DCA does for your company is very quick compared to traditional litigious methods.
So, there you have it. Using Professional and reputable debt collectors can mean the difference between a business that dies on its feet due to bad cash flow and one that thrives, because it gets paid on time.
Bit of a no-brainer, wouldn’t you say? The modern day UK Debt Collection industry is more credible than ever, largely thanks to new governance. Also, the Credit Services Association, which is the industry’s only trade association which helps to ensure the industry remains fair.
The leading Small Business Debt Collection Agency for B2B and SME’s in the UK is Federal Management. They recover millions every year are a Multi Award Winning Organisation with Offices across England and Scotland.
For Private Debt Collection, Frontline Collections are undoubtedly the Premier Debt Collectors. They collect hundreds of thousands of pounds every month for companies, sole traders and individuals. They specialise in collecting debts owed from individuals and can collect debts on a local, nationwide and international scale.