Is it Worth Chasing My Debt? Here’s How to Decide

Outstanding invoices can be a real headache for businesses of any size. You put in the hard work, and you deserve to get paid. The question then becomes: Is it worth chasing the debt? Or should I cut my losses?

In this blog, we’ll explore the questions to consider before you decide to chase your debt and offer strategies to maximise your chances of getting paid.

Should I Chase a Debt?

The answer, in almost all cases, is yes. Here’s why:

• Cash flow is king. Unpaid invoices can disrupt your cash flow, hindering your ability to pay your own bills and invest in your business. Ignoring them can quickly lead to financial strain.
• It sets a precedent. Letting one debt slide can encourage others to follow suit. It might encourage other clients to delay payments, creating a domino effect that could seriously impact your business.
• It can damage your reputation. If you’re known for letting debts go unpaid, it can make you less attractive to future clients. It suggests financial instability or even a lack of backbone in collecting what you’re owed.

In short, collecting what you’re owed is essential for the financial health and reputation of your business.

So, How Do I Chase My Debt?

From friendly reminders to clear communication, there’s a science to collecting outstanding invoices effectively. Here is what we recommend:

• Start with gentle nudges. A friendly reminder letter, email, or phone call can often be all it takes to jog your client’s memory and get them to pay. Sometimes people genuinely forget!
• Communicate clearly. Ensure your invoices are easy to understand and clearly state the payment terms. Consider offering different payment options for convenience.
• Be proactive. Reach out to clients before the invoice is due, discuss payment options and answer any questions they might have. This can prevent late payments altogether.

But What If They Still Don’t Pay?

If you’ve done everything you can to collect your debt, and the client remains unresponsive, it’s time to call in the professionals. Here at My Debt Recovery, we specialise in recovering outstanding invoices for businesses. We have the experience and resources to track down debtors and negotiate settlements.

Call us on 0800 009 6106 or email hello@mydebtrecovery.co.uk to get in touch. Don’t wait – get your money back!