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Debt Collection Process Solutions for Small Business

The economic downturn has hit all of us hard and it’s resulted in many small to medium traders shutting up shop or closing down their businesses. Although we’ve been seeing an upswing over the past couple of years, it’s been a long, slow recovery and it often seems that the current financial crisis is here to stay. Operating under such adverse conditions is difficult enough for the big guys – the high street retailers with branches in every town in the UK, the multi-nationals, etc. We’ve even seen reports that McDonald’s closed hundreds of stores last year – a first in the history of the popular American burger chain which has managed to open restaurants in most countries on the planet.

If things are difficult for the larger companies and corporations, then it’s a fair bet that smaller businesses will struggle to stay afloat and hundreds of SMEs across the UK have closed down over the past few years as they found it impossible to stay afloat. One of the major problems for smaller companies and home-based businesses is maintaining a steady cash flow.

If you have a small business you may have found yourself waiting for weeks or even months for your invoices to be settled. Just a few regular clients or customers who always seem to leave it until you remind them before settling the bill can cause serious problems for a small business owner. There are even clients and customers who renege on the deal totally and just don’t pay at all – this is totally unacceptable. However, what can be done? It’s true that you can turn to the small claims court system to try to recover the payment, but that costs money and takes up quite a bit of your busy time. Many small businesses just decide to let the payment go and not deal with that particular customer or client again in the future.

The extra administrative work involved in chasing late payers, re-invoicing and sending reminders can take up a lot of time that could be better spent on working with other customers or clients or growing your business. So many small businesses have gone under in recent years simply because they cannot maintain a steady cash flow due to the late payments – this is simply not fair and not right.

One of the easiest options available is to hire the services of a third party to administer the debt collection process. Leaving it to the experts in this way is usually the most sensible way of dealing with late or non-payers – they have the knowledge and expertise necessary to recover the debt for you. If you’re wondering if it’s worth hiring a recovery collection agency, then look for an agency that offers a “no win, no fee” service. Doing so will give you the peace of mind that you’re not throwing even more money at the problem – you only need to pay for the service if the debt is successfully collected.