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Chasing unpaid invoices can be a time-consuming and frustrating task, especially when debtors are unresponsive or uncooperative.
We often find that our clients recognise that they need some assistance, but they’re not sure when the right time to instruct a commercial debt recovery agency is.
Here are some key indicators that could signal the need for professional help.
1. Lack of Time or Resources
Sometimes it’s as simple as a business not having enough time or the right in-house resources to chase debts, so they need professional help. A debt recovery agency is able to take on chasing payments, negotiations and legal proceedings (if necessary) on your behalf, enabling you time to focus on core business activities.
2. Communication Breakdown
Persistent attempts to contact a debtor without success can be a frustrating experience – especially if you are losing valuable time that can be spent on other business tasks. A debt recovery agency can employ more assertive tactics, including legal action if necessary, to encourage payment. It will also take the pressure off you as the chasing of payments will be done by the agency.
3. Negotiation Challenges
Negotiating payment plans or extensions can be complex. If you are not experienced or confident with negotiating, then a debt recovery agency can step in and negotiate on your behalf, keeping you updated at each stage of the process. An experienced debt recovery agency will be able to analyse the situation for both parties and reach a satisfactory outcome – and a good one will be able to negotiate without damaging the existing relationship with your client!
4. Missed Payment Deadlines
Repeated missed payment deadlines, even with agreed-upon payment plans, indicate a lack of commitment from the debtor. Plus, if you don’t keep on top of the payment plan and allow payments to slide, then it sets a precedent with your debtor and they may feel as though they are able to bend the rules and delay payments further. By instructing a debt recovery agency to keep a close eye on the plan, they can ensure that payments are being made on time and also follow up on any delays with reminders.
5. Statute of Limitations
A debt becomes Statute Barred when it passes six years since the last payment towards the debt or acknowledgement of the debt was made. Delaying action can risk losing the right to recover the debt entirely, so as a general rule, it is always best to act sooner rather than later when instructing a debt recovery agency. It’s also important to keep all correspondence that relates to the payment in question on file as the burden of proof is on you, the creditor.
6. Impact on Business Cash Flow
Unpaid invoices can negatively impact your business’s cash flow. It ties up vital cash resources, limiting your ability to invest in new inventory, marketing initiatives, or employees. By working with a debt recovery agency, you can increase your chances of recovering outstanding debts and improve your cash flow position, allowing you to maintain a healthy financial footing.
If you have been considering instructing a professional debt recovery agency to help you with debt collection, contact My Debt Recovery today. Our experienced team have more than ten years of experience in commercial debt recovery and have an incredibly high success rate.
Please get in touch by calling 0800 009 6106 or emailing hello@mydebtrecovery.co.uk.
