While no business can benefit from late payments, a delay in incoming revenue can be disastrous for small or medium sized companies. With many SMEs relying on continuous cashflow, unpaid debts can affect the operation of the business as a whole.
As many SMEs don’t have the capacity to employ in-house debt recovery experts, they can find it difficult
to resolve the issue of late payments. As a result, their business can face financing problems and may even be forced to suspend or cease trading.
Getting Expert Help
Fortunately, there is help available for SMEs. Rather than attempting to process debt collection in-house, they can access professional assistance by outsourcing.
With various dispute resolution options available to SMEs, professional debt experts can ensure that businesses are able to recover their debts swiftly. Whether a letter before action is required or a winding up petition needs to be issued, using an experienced debt recovery firm can ensure that the matter is handled appropriately and effectively.
If on-going late payments are impeding your cashflow and resulting in operational delays, it’s essential to obtain payment quickly. By referring the matter to debt recovery solicitors, you may find that the debtor responds more quickly to your demands.
A solicitor’s letter, for example, can be far more effective at motivating a debtor to pay their outstanding bills, than a standard business letter or invoice reminder.
Unfortunately, SMEs without experience in debt recovery may think taking a client to court is the only option to recover their funds. However, this can be an expensive and acrimonious process.
Experienced debt collection professionals will identify alternative solutions which can help you to avoid commercial litigation. Rather than engaging in a costly and time-consuming court battle, you can use debt recovery services to resolve the problem far more quickly and with less impact on your business functions.
Building an in-house debt recovery team can be a costly and unnecessary process for many businesses. Rather than add to operational costs, why not employ the services of experienced UK and international debt recovery solicitors as and when you need them? This can reduce costs and resolve the issue of late payments, while enabling your business to run efficiently and profitably.