There comes a time when most small business owners face not getting paid. This could be for goods or services rendered. Small Business Debt Collection is on the increase in the North East and across the UK. Given the rate of Business failure, it is easy to understand why.
Society has moved towards a scenario where the person owing the money is the victim. Is this wrong? Maybe not in the case of the Payday Loans fiasco but certainly where Small Businesses are concerned. These days, it can be a real stress chasing unpaid debts.
Not only is the task itself stressful, it is counterproductive. There is also the issue of legal compliance. When does your efforts to collect what is owed become harassment?
The best way to stop the problem is to prevent it happening in the first place. Prevention is better than a cure, right? But hindsight is a wonderful thing. But going forward, there are some simple practices to adopt to prevent unpaid debts occurring. It should be very clear when and how they wish to be paid for the goods or services provided.
Expert Debt Collection advice can be critical for Small Businesses in the UK. In the past year alone, thousands of SME’s have gone bust in the UK due to non-payment.
All Small Business owners should have a plan for when their invoices are not paid. Efficient accounting can minimise the threat to any SME.
Hypothetically speaking, basic good practices will benefit small businesses cash flow.
SME Business experts have recommend using some of the following to optimise cash flow. Follow these handy tips to ensure there are no slip ups.
- Confirm all orders in writing – Upon receipt of an order, Small business confirm this in writing. ‘Writing’ includes emails. Confirmation of the order placed should contain the agreed cost and reference numbers.
- Clear invoicing – Details any goods or services that are supplied. These need to have the correct date on along with any particulars. Clearly stipulate expected payment dates and terms etc
- Monthly Statements -These can be an important tool for regular or repeat customers. They will keep clients informed of payment due dates.
- Reminders and warnings – A small business owner should not be afraid to ask to be paid. If accounting software is being used, reminders can be automated. If reminders are ignored then a warning of ‘further action’ needs to be given.
Last Resort
In a Commercial Utopia, all small business customers would pay on time. However, we all know that is not the reality of modern commerce. Some customers will deliberately try to avoid paying. There are instances though where there can be a genuine reason for non-payment.
Unfortunately, one of the many challenges facing small business owners in North East is non-payment. When reasonable dialogue and your best endeavours fail, action needs to be taken.
Professional Solution
When payment deadlines are missed, it is time to seek professional help. Debt Collection Agencies are a Low-Cost solution for many. A reputable Debt Recovery service can be of real benefit to a Small Business.
It is important to realise though that not all Debt Collection services are the same. As with any sector, there are some good, some bad and some really ugly.
Frontline Collections are regarded by many as the most efficient way of recovering small business debts. A Professional firm of debt collectors that has been helping SME’s for over 15 years. A far more economic alternative to the well-trodden route of costly legal actions.
For B2B Debt Recovery, Federal Management are lauded as the best. This is largely due to their high level of industry awards and prestigious clientele. Again, they provide a low-cost solution to their expanding Commercial client base.
Most Agencies operate a commission payment basis along with a small instruction fee. They have to act lawfully and follow a strict code of conduct. Many agencies are accredited and provide a bespoke professional service.
The old saying is that a Quality Service will deliver Quality results.
A solution for Small Business Debt Collection has to tick all the boxes. A Professional Debt Collection Agency can offer a low-cost solution for a very expensive problem.