Chasing late payments is an unfortunate part of business finance. While we wish all clients could pay on time and in full, it doesn’t always work like that. There are many reasons why late payments occur and the one-off is usually human error.
Multiple, and continuous late payments are where businesses should be concerned. If you aren’t chasing them then you are losing out on money that is by right yours. Clients owe you for services or products you have provided and as such you should be chasing them to obtain it.
Current late payment stats in the UK
28% of businesses have recently reported that late payments are becoming more common. The cost of living crisis is taking the blame for these actions, and many businesses say themselves that they are struggling to make ends meet.
FSB have reported that late payments are threatening the survival of 1/10 UK small businesses. As much as 440,000 could close within the coming year.
Why are SMEs afraid of chasing payments?
Many SMEs fear chasing late payments due to the perceived costs it could create for them. Many small businesses believe that it would cost them more to chase a payment than the payment itself is worse, and so they write off the amount. This is extremely detrimental to your business, you can read our blog on why you shouldn’t write off unpaid invoices here.
Another reason SMEs are afraid of chasing late payments is how their businesses are viewed by others. Many want to have a business that people speak fondly of, and if you chase late payments it could be viewed negatively.
Alternatively, SMEs want to keep people coming back to them, and so do not chase late payments because they fear it would impact their returning clients.
The myths of commercial debt recovery
The most common myth and misconception of any debt recovery agency is that we are all awful. We promise we aren’t horrible people! Our team at My Debt Recovery are some of the most compassionate and understanding humans you will ever meet. We understand that sometimes debt creeps up on you and so you bury your head in the sand and hope it goes away.
Another myth is that bailiffs are sent in and you will be left in an empty and ruined room. That’s not true either. Many debt recovery solutions involve payment plans and other avenues of repaying the invoices. It’s not at all what you see on the TV.
Benefits of recovering your business debt
There are many benefits of recovering your business debt. The most obvious and important is reclaiming the money which is owed to you for your services or products. As a business, you deserve to be paid what is owed for your products and services. There shouldn’t be a question of that. However, the reality isn’t always as black and white. It’s why you should always work to recover any unpaid invoices.
Another benefit of recovering your business debt, specifically with a debt recovery agency like My Debt Recovery. It’s easy and stress free. We work to recover the money which is owed. This allows you to entrust us with the payments you are looking to recover and leave the rest to us. Simple, easy, and effective.
Another benefit to recovering your business debt is that you will see an instant improvement to your cash flow. Many businesses who do not recover business debt find themselves with a loss of income, they have still had to pay for supplies, employees and other parts of running a business. However, when you recover any unpaid invoices that money is straight into the bank to pay for the expenses of your services or products.
There are many reasons why people are scared to chase late payments, however, if you don’t you will miss out. Here at My Debt Recovery, we help you claim what is owed in a simple, effective and stress free way. Contact our team now to see how we can help.