Ask any business owner what keeps them up at night and money worries will probably be high on the list. That’s why it can be exasperating when a customer fails to pay for work you’ve completed or products you’ve supplied.
In a tough economic climate with rising costs, cash flow and profitability are more important than ever. The Insolvency Service recently reported that the number of business insolvencies in England and Wales in December 2022 was almost 32% higher than in the same month in the previous year. Debt could be the tipping point that creates a real risk of facing serious financial problems, but there are ways of working to resolve it.
What can you do to collect unpaid debts?
It’s always difficult to balance the time and effort involved in debt collection with running your business, particularly if you’re an SME with limited internal resources for credit control and financial management. However, it pays to stay on top of things and ensure you’re doing everything you can to get paid what you’re owed, from the timely issuing of statements and chasing letters to taking things further with potential legal action.
So, what do you do if you’ve hit a dead end in every avenue you’ve tried? Or you simply can’t spare the time to focus on debt recovery because you’re busy winning new business and concentrating on ensuring your other, good paying customers get the service they deserve?
Is it time to bring in the professionals?
If overdue invoices are impacting on your cash flow and putting your business at risk, maybe it’s time to use a professional debt collection agency. It could cost you less than you think, and a reputable agency will have a results-focused approach, a good track record of success and a desire to protect your reputation.
Is the cost worth it?
A good debt collection agency will work on a no collection, no commission basis, so there are no upfront costs to worry about. And remember, it’s likely to cost you a lot less than other potential routes, such as consulting a legal professional. Paying a commission to a debt collection agency andgetting most of what you’re owed has to be a better outcome than writing off the debt completely.
Will it take the pressure off you?
The best debt collection agencies pride themselves on being proactive. Once you’ve briefed them on the debt and provided them with any supporting documentation, you should be able to leave it to them. That means you can get on with the important task of running your business and focusing on the future.
Put your debt collection in safe hands
At Redwood Collections, we’re here to help you collect unpaid debts efficiently and cost-effectively, reducing the impact on your cash flow and the financial integrity of your business. Our simple, commission-only fee structure ensures we’re motivated to achieve positive results as quickly as possible. However, you can be reassured that we’ll always act with professionalism and propriety to protect your good name. It’s all about helping your business Grow Stronger.
