Small Business Debt Collection is more active than ever due to the pandemic and its aftermath. Unpaid Small Business invoices are at a record high so we have sought Expert advice for Small Business Debt Collection tips from leading Commercial Debt Collection Agency Federal Management.
Needless to say, Covid-19 has had a massive effect on Small Businesses and it is said, at least 1 in 5 are suffering as a result of unpaid invoices.
A group of top UK Insolvency firms has predicted a wave of Small Businesses going bust as a result of unpaid small business debts. If you are a Small Business Owner that is owed money, you will be all too aware of the stress is causes.
There are laws now that govern Private & Small Business Debt Collection. Ignorance should not be used an excuse so regardless of if you are self-employed, a sub-contractor or a Limited company, there are guidelines in place when it comes to small business debt collection.
Late-paying customers or unpaid invoices is not something new. In England and Wales, there are millions of pounds worth of invoices that are unpaid. A recent official study showed over 60% of small businesses have unpaid invoices that are over Two months overdue.
So, what can you do if your invoice has not been paid? Are you self-employed a? A simple Small Business Debt Collection plan can help. A solid plan can help your Small Business to get paid when customers are shy.
We approached leading UK Commercial Debt Collection Agency Federal Management for some advice.
Having been in operation for nearly 20 years, Federal Management are a famous name in the field of Commercial Debt Collection. They collect millions every year for their clients which range from small enterprises through to Large Groups and PLC’s
5 basic expert tips when you are faced with an unpaid small business invoice.
Top Tip 1 – Ensure you send A Reminder
This is a natural thing to most but many Small Business Owners fail to send reminders.
If you use accounting software, this can automatically send a reminder to your customers on your behalf.
Top Tip 2 – Expect to be paid
As a Small Business, you should expect to be paid. It’s the basic caveat of commerce. Regardless of coronavirus, you should expect to be paid on time.
Understand what is an excuse and what is a genuine reason. Unscrupulous people are manipulating the pandemics fall out for their own financial gain.
Top Tip 3 – Call your customer
If invoice terms are well overdue, it is time to act. Go direct and get on the telephone. Sometimes, just a proactive approach is needed. Phone calls are harder to ignore unlike emails or letters.
By speaking with your customer, you should at least know the current situation and when you will be paid.
Top Tip 4 – Stay professional and don’t get vexed
If emails and phone calls have been ignored, this is where frustrations creep in. It is important to understand that you must remain professional at all times. If you are at the point where you are losing your temper with a customer…don’t!
Maybe try a softer approach. Make them aware that you can be understanding of situations and want to get it resolved amicably.
Top Tip 5 – Using a Debt Collection Agency
More Small Businesses are using Debt Collection Agencies than ever. There are many Professional Debt Recovery solutions but it is important you make the right choice for your business.
Under the regulation of the (FCA) Financial Conduct Authority, the UK’s Debt Recovery industry has morphed into a popular cost-effective solution for Small Business Debt Collection.
Not all Debt Collection Agencies are the same. It is essential that you only partner with a Professional debt recovery agency. It is always advisable to stay away from the ‘no win – no fee’ banner waving offers. Nothing in life comes for free and only trust that type of firm if they have been recommended by a pier as being legitimate.
UK’s Top Debt Recovery solutions
Professional standards and practices are higher than ever amongst the UK’s premier debt recovery firms.
For Commercial Debt Collection, Federal Management are the top name. For 20 years or so, they have been providing Award Winning Debt Collection Agency solutions. Their clients range from SME’s through to Large PLC’s.
For B2C or Personal Debt Collection, Frontline Collections are highly revered. They are the ‘Gold Approved Supplier’ for Debt Collection services to the Independent Schools Association amongst others.
They help public serving small businesses from Vets, Dental practices to Self Employed tradesmen. They can also help those that are owed money personally.
Both Debt Collection Companies provide free appraisals and assessments of your debt to ensure they are worth pursuing and both have fantastic reputations.
