How SMEs Can Effectively Pursue Commercial Disputes

SMEs are the backbone of the UK economy, and when they face difficulties due to late payments and overdue invoices, it has a knock-on effect on the whole country. SMEs are currently suffering from cash flow problems as a result of these issues. So it is crucial that they take steps to tackle disputes about overdue invoices head-on. In this blog post, we will discuss how SMEs can effectively pursue commercial disputes about overdue invoices.

“Over a quarter (26 per cent) of UK small or medium-sized enterprises (SMEs) have seen the number of late payments they receive increase since the cost of living has gone up, according to new research from Barclays.”

This research from Barclays highlights the extent of the problem that SMEs are facing. Not only are they struggling to keep up with rising costs, but they are also having to deal with late payments and overdue invoices. This is putting a huge strain on their cash flow, and it is becoming increasingly difficult for them to stay afloat.

Late payments have a detrimental impact on a company’s income, which can lead to cash flow uncertainty which is the most common reason for commercial failure.

For some organizations, this outstanding debt might prevent them from taking on new staff or investing back into their firm. In fact, Barclays research further found that “10 per cent said that the amount they are owed in late payments could be used to recruit more staff and 12 per cent said they could expand their products or service offering, growing their business.”

How SMEs can tackle disputes about overdue invoices

There are a number of ways that SMEs can tackle disputes about overdue invoices. The first step is to try and resolve the issue directly with the customer. This can be done by sending them a reminder letter or email, or by calling them to discuss the outstanding debt. If this does not work, then SMEs can take legal action. This can be a costly and time-consuming process, but it is often the only way to get the money that is owed to them.

The government has recently introduced a number of measures to help SMEs with late payments and overdue invoices. For example, they have set up a dedicated task force to tackle the issue, and they have also introduced new legislation that will make it easier for SMEs to claim back the money that is owed to them.

The government’s efforts are a step in the right direction. However, it is important for SMEs to know their rights and to take action themselves if they are facing commercial disputes about overdue invoices. By taking these steps, SMEs can protect their cash flow and ensure that they can continue to thrive.

The importance of chasing late payments for SMEs

The late payment of invoices can have a serious impact on an SME’s cash flow. This is because they are not receiving the money that is owed to them, which can then prevent them from being able to pay their own bills on time. This can create a vicious cycle, and it can quickly spiral out of control.

Debt collection is a great way to recover what is owed. Often being able to get the money that is owed to them much faster than if they were to chase the debt themselves. This is because we have experienced staff who know how to effectively pursue commercial disputes.

It is important for SMEs to remember that they have options when it comes to chasing late payments. By taking action and using a debt collection agency, they can protect their cash flow and ensure that they can continue to operate effectively.

At My Debt Recovery, our debt recovery is No Collection, No Fee. We provide a fully comprehensive debt collection service that uses the most advanced techniques to trace debtors and recover money owed.

Learn more about Ignored Overdue Invoices Won’t Pay Themselves and Why You Should Let Go Of Fear And Act On Late Payments.

Take Action Against Overdue Invoices Today

Remember, the longer you wait, the harder it is to get payment from overdue invoices. If you’re struggling to get paid, It is time to take action and get your debtors to pay up. Drop us a line and we can help you get paid!

By engaging with My Debt Recovery, we can take the stress away. Allowing you to refocus your attention back on what you do best, growing your business.