It’s no secret that commercial debts can cause a drain on your business’s cash flow. In fact, it’s one of the most common reasons businesses go bankrupt. However, there is hope! If you’re proactive about recovering your commercial debts, you can improve your cash flow and keep your business afloat. In this blog post, we’ll discuss some tips for recovering commercial debts and improving your cash flow situation.
How to improve your business cash flow by recovering commercial debts
If you’re like most businesses, commercial debts are a fact of life. But just because they’re common doesn’t mean they’re not a problem. In fact, commercial debts are one of the leading causes of business bankruptcies. However, if you’re proactive about recovering your commercial debts, you can improve your cash flow and keep your business afloat.
There are a few different ways you can go about recovering commercial debts, but the most important thing is to be proactive. The sooner you start working on chasing outstanding invoices or payments, the better off you’ll be.
Here are a few tips to get you started:
– First and foremost, send a polite reminder to the customer that their payment is overdue. Don’t be too pushy or aggressive, as this will only make the situation worse.
– If the customer still doesn’t respond, you can escalate the issue by sending a formal demand letter. This should outline the amount of money owed, as well as the consequences of not paying (such as instructing a debt collection agency).
– If the customer still doesn’t respond to your demand letter, consider the benefits of instructing a debt collection agency. This is often an effective way to get commercial debts paid, as the debt collection agency will have experience and resources that you might not.
How to protect your business cash flow
It’s crucial to minimise the time it takes you to collect money from your clients by obtaining a cash flow management plan. You may want to consider putting processes in place that request payment ahead of time (or at least staged payments) to avoid having to chase down past overdue invoices. It is also important to ensure that your terms and conditions are airtight so that you are adequately protected in the event that an invoice goes unpaid, or if payment is delayed.
If an invoice goes unmet, it’s essential to set up a well-structured credit control/debt recovery procedure as soon as possible to get the ball rolling. At this point, it’s better not to take an overly forceful approach right away, since there may be a reasonable explanation why debt hasn’t been paid or overlooked.
If the situation persists and you cannot manage to make any headway, then your next step should be to seek professional debt recovery support. Not only can we help you to claim back what is due to you (including late payment interest in some cases). We can also assist you with procedures to avoid this in the future, as well as maximise your ability to recoup expenses if necessary.
Commercial Debt Recovery with My Debt Recovery
Using a professional debt collection specialist, like My Debt Recovery, is a proven way of collecting outstanding debts. We have a proven track record of recovering debts quickly and efficiently on behalf of our clients. As we operate on a no collection, no fee basis, you can rest assured that we will make every effort to recover your debt.
We have built a strong reputation for being professional, achieving results and approaching debtors with an attitude of understanding. Each of our clients receives a bespoke approach to their case based on the type of debt and their relationship with the debtor.
Whether you are looking to recover a single debt or multiple debts, My Debt Recovery can help. Contact our team today to get the ball rolling.