It is hoped that when the powers of the Small Business Commissioner are strengthened, allowing it impose fines on larger businesses that fail to make payments on time, with binding payment plans or financial penalties imposed, it will change the culture of late paying.
However, these changes are unlikely to resolve the cash-flow issues that ensure many smaller firms go under when dealing with firms of a similar size. Chasing these accounts, can be a drain on resources, time and patience, for the average SME, with professional help a better option for most.
But choosing the right debt collection specialist is critical, according to Phil Wilding, Head of Debt Recovery at law firm Wright Hassall:
“Not every company will be right for your business and there a number of considerations when selecting a partner to recover the money you are owed.
“Look for a business that offers an end to end debt recovery solution, from pre-legal through litigation to enforcement. This allows the level of activity or tone of recovery message to be escalated, to ensure more is collected, ultimately saving you money.
“Choosing the right debt collection agency could well affect the ultimate success of your money being recovered, so do your research and choose wisely.”
• Debt collection services to look out for
• An explanation of costs
• Protecting your brand and customer relationships
• When and how to go to court
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