Late payment is on the increase in the London with Small Businesses on the frontline. Recent surveys have shown that the culture of late payment is worsening by the month. The current high inflation rates also suggest that the UK is on the brink of a recession.
A sharp rise of companies in liquidation has further fuelled suspicions. Businesses in London has seen the issue of late payment exacerbated by rising fuel costs amongst others. But still the biggest threat to Businesses in London in non-payment of invoices.
The use of Professional Debt Collection services in London has been on the increase post pandemic. Once considered a last resort, many London Businesses are turning to accredited Debt Collection Agencies in London to help tackle the problem.
The well exhausted path of costly litigation to collect unpaid business debts is a thing of the past. London Businesses now turn to Commercial Debt Collection firms for help. Highly professional solutions are providing great value to the capital’s business community by providing a low-cost professional remedy for the problem.
The Debt Collection industry’s continual progress has been largely orchestrated by the Credit Services Association. The Financial Conduct Authority was also tasked with improving standards in 2014 and continues to do so for regulated debt.
As reams of Businesses are choosing debt collection agencies as a solution to unpaid invoices, there is still a level of uncertainty amongst Business owners in London for whom they should work with. As with any sector, Debt Collection services have their different areas of specialism.
Any Business considering working with a Debt Collection Agency in the UK should always use an accredited and professional service only.
B2B Debt Collection
B2B Debt Collection can also be known as Business Debt Collection or Commercial Debt Recovery.
The well-established and well-respected name for B2B Debt Collection in the London is Federal Management. They collect millions on behalf of Small Businesses and PLC’s across London and the UK every year by way of UK Debt Collection and International Debt Collection services.
A multi–Award-winning Debt Collection Agency that has been recognised over the years by institutions such as Investors in People, National Skills Academy and Financial Services College. The Open University have also called upon their assistance with student course content such is their efficiency.
Federal Management help Businesses collect payment of overdue invoices on a small fixed fee basis. Their prestigious client base has included the likes of Premiership football clubs, high roller casinos and they have even been called upon for assistance by Westminster. This is in addition to assisting Small Businesses and sole traders with recovery of debt on a daily basis. Their cross-industry experience sees them assist companies from business sectors.
A free pre-action assessment is provided on all cases which is designed to measure the chances of success. A high rated service that has a five-star reputation across the country.
Private and Personal Debt Collection
Personal Debt Collection is where a debt is owed by an individual, not a commercial entity. Debts of this nature are usually owed to public-serving enterprises. Debts typically arise from the supply of goods or services to an individual. Also referred to as Consumer Debt Collection or Private Debt Collection.
Frontline Collections is the stand-out name for Private and Personal Debt Collection in London. In 2020 they were announced as the Gold Approved supplier of Debt Collection services to the prestigious Independent Schools Association.
Frontline’s areas of expertise are debt Collection for Private Schools, Dental debt collection and Debt Collection for the veterinary sector. They also offer debt collection services to private individuals for debts such as personal loans given or unpaid wages and suchlike.
They offer a fixed fee service with a free appraisal on all personal debt collection matters relating to monies owed to a business or a private individual.
When to use a Debt Collection Agency
If a Company’s terms have not been met and all requests have been ignored, it is a red flag warning that action should be taken.
A final reminder is normally sent via recorded delivery to ensure it is seen. Also known as a letter before action. This will advise the customer that the debt needs to be paid and set a deadline for payment accordingly.
If the deadline is ignored, very often debt recovery action follows. Regardless of whether it is a Debt Collection in London or an International Debt Collection, there are solutions for all scenarios available.
Chris Reid, Editor of Debt Collection Industry news website www.ukdcnews.co.uk said “In the current climate it is essential Businesses act to recover what is owed to them.”
He continues “Businesses can sometimes be reluctant to take action against customers that don’t pay for fear of losing them. No Business wants customers that don’t pay so it should always be an option to refer the matter to a Professional Debt Collection Agency once terms of repayment have not been honoured”
“Working with a suitable debt collection service can maximise recovery and minimise cost. Hundreds of thousands of businesses have collapsed because they did not take positive action to recover their unpaid debts”
“Working with the best Debt Collection Agency for a business can be of massive value.”
Average invoice payment date worsening
A report produced in May from accounting software firm Xero showed that invoice payment times are worsening. The longest delays are being seen for invoice payment in years.
The Federation of Small Businesses also issued calls to act on Small Business Late Payment saying that nearly half a million small businesses are on the brink of collapsing.
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