Late payment is massively on the increase in the UK with Small Businesses on the forefront. Recent surveys show that the Small Business late payment culture is worsening month by month as the UK faces up to a possible recession.
There has been a steady rise of companies in liquidation. The problem of late payment has been exacerbated by spiralling fuel costs and an unsteady financial landscape in the aftermath of the pandemic.
The usage of Professional Debt Collection Agencies in the UK to combat the problem of Small Business late payment has been steadily been on the increase. The emergence of Professional Debt Collection Agencies in the UK has been a transient one over the past couple of decades.
The heavily trodden path of expensive litigation to recover unpaid invoices has been well exhausted. Thousands of UK SME’s now turn to Commercial Debt Collection Agencies and suchlike to recoup unpaid invoices and overdue accounts.
The industry’s continued development has been overseen by the Credit Services Association. The Financial Conduct Authority has also stamped its mark on the growing sector as it attempts to regulate Debt Collection firms.
Whilst many Businesses are turning to Debt Collection Agencies, there is still some uncertainty amongst Business owner of who are the best Debt Collection agency solution for their particular niche.
B2B Debt Collection
B2B Debt Collection is also referred to as Business Debt Collection or Commercial Debt Collection.
The most revered name for B2B Debt Collection in the UK is Federal Management. A long-standing pillar within the UK’s debt collection community, they collect millions on behalf of Small Businesses and PLC’s every year by way of UK Debt Collection and International Debt Collection services.
An award-winning Company that has been recognised over the years by institutions such as Investors in People, National Skills Academy and Financial Services College. They have even helped with student course content for the Open University.
Federal Management help Businesses recover overdue invoices and unpaid account on a small fixed fee basis. Their clients have included Premiership football clubs, high roller casinos through to Small Businesses and sole traders. Their cross-industry experience allows them to assist most Business sectors in recouping owed monies.
They provide a free pre action assessment on all prospective cases measuring the chances of potential success for their clients. A high rated service that has a five-star reputation going back nearly 20 years in the industry.
Private and Personal Debt Collection
Personal Debt Collection is where a debt is owed by an individual, not an enterprise. Debts of this nature are usually owed to customer serving businesses. Debts usually arise from the supply of goods or services to an individual that have not been paid for. Also known as Consumer Debt Collection.
Frontline Collections is the most famous name for Private and Personal Debt Collection in the UK. So much so that they were awarded Gold Approved supplier of Debt Collection services to the prestigious Independent Schools Association.
Frontline’s areas of specialism appear to be debt Collection for Private Schools, Dental debt collection and Debt Collection for the veterinary sector. They also offer debt collection services to private individuals for debts such as personal loans given or unpaid wages and suchlike.
They offer a fixed fee service with a free appraisal on all personal debt collection matters relating to monies owed to a business or a private individual.
When to use a Debt Collection Agency in the UK
If a business’s terms have not been met and any amicable attempts to get paid have been ignored, it is often a sign that a Business needs to act.
Normally a final reminder is traditionally sent. Also known as a letter before action. This will advise the customer that the debt needs to be paid and set a deadline for payment accordingly.
If this deadline is ignored, very often action is taken to ensure payment. Whether its Debt Collection in London or International Debt Collection, there are solutions to help all shapes and sizes of businesses.
Chris Reid, Editor of Debt Collection Industry news website www.ukdcnews.co.uk commented “In the current climate it is essential Businesses act to recover what is owed to them.”
He continues “Businesses can sometimes be reluctant to take action against customers that don’t pay for fear of losing them. No Business wants customers that don’t pay so it should always be an option to refer the matter to a Professional Debt Collection Agency once terms of repayment have not been honoured”
“Working with a suitable debt collection service can maximise recovery and minimise cost. Hundreds of thousands of businesses have collapsed because they did not take positive action to recover their unpaid debts”
“Working with the best Debt Collection Agency for a business can be of massive value.”
Average invoice payment date worsening
A report produced in May from accounting software firm Xero showed that invoice payment times are worsening. The longest delays are being seen for invoice payment in years.
The Federation of Small Businesses also issued calls to act on Small Business Late Payment saying that nearly half a million small businesses are on the brink of collapsing.