Huge companies collapsing can send shock waves and ripples through the business community that reach far and wide, from large corporations through to medium and smaller sized businesses. There are steps you can take to mitigate your risk by having robust systems in place. Partnering with an established and experienced collection agency is one way to do this
Many sole traders and small businesses are unwilling to chase bad debt.
Research has shown that many of these are hesitant about doing so because of how awkward or uncomfortable it makes them feel. Others do not pursue what they are owed for fear of antagonising or alienating a customer who they want to keep. Even if these businesses have started trying to recover the money 3 in 10 will simply give up before they have their money.
Chasing overdue payments from clients can be a time-consuming and frustrating process, and there are a number of different circumstances where using a professional would be the best option for your business. But how do you know when it’s the right time to ask someone to take over this role for you?
At Daniels Silverman we have identified 5 circumstances when using a debt collection agency would benefit your business.
Taxi companies typically offer credit accounts to companies who regularly need their services. It is a convenient way to allow staff to access meetings at different venues as well as picking up clients who are coming to see them.
This is something that has been particularly true in the debt collection industry. The common misconception is that these agencies operate outside the law and use intimidation and threats to get your money back. This is simply not true of any reputable and regulated agency.
In a busy and fast-paced environment these companies may struggle to find the time, or have the necessary skills required to recover any monies owed from unpaid invoices. As with many companies maintaining good customer relationships is key to retaining clients and securing repeat work and this can put businesses in a difficult position. How do you get the money you are owed, for the work you have done and keep a healthy relationship with your client base?
How many business owners use this time to make business resolutions? The Christmas break has allowed a little time for reflection and a lot of business owners will be heading back to work with renewed determination to focus more on growing their business, rather than working in their businesses this year, but how many will make specific resolutions?
Debt recovery within the construction industry takes specialist knowledge and understanding of the sector. Construction contracts are often very complex, (sometimes deliberately so), and this results in businesses being paid less than they are owed, not being paid on their terms or not being paid at all.
The sector remains strong and is estimated to be worth over £35 billion, this combined with increased confidence in the economic forecast despite Brexit, means that this could be a record year for recruitment. Although the sector is buoyant, receiving payment for their services appears to be an ongoing problem in the industry.