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May 2019

Disclaimer :
"Any views or opinions expressed in these blogs are solely those of the author and might not represent those of Access Credit Management Limited."

Debt Collection News Roundup – April 2019

Here at Access Credit Management we like to make sure we keep our readers up to date with all of the interesting and relevant news about our industry.  To this end, once a month we publish a News Roundup.  This should keep you up to speed with all the important goings on within the sector so that you have a resource that keeps you fully informed of all the latest news.  It would be interesting to know what you, the readers, think of the stories that feature here.  Please join in by adding your comments on our Facebook page, tweeting on

How Contracts Can Help Recover Debts

As a business owner, you’re likely to have several contracts relevant to your business.  A good, transparent contract can help to establish and regulate your business relationships and aid your business in maintaining a steady cashflow.  A clear contract also has a role to play when it comes to recovering debts owed to your business.

The Business Benefits of Outsourcing Commercial Debt Collection

Running your own small to medium sized business here in the UK often seems to take up more time than the business owner actually has, with so many business owners wishing there were more hours in each day and more days in each week as they struggle to juggle and keep all the balls in the air.  There are so many tasks to complete, so many different issues to think about, so many responsibilities to keep on top of that running a business seems to be a full-time job and then some!  This may be the reason that so many commercial debts are left unresolved, especially when the sums are relatively

Debt Collection – How to Preserve Customer Relationships

Customer relationships are an important aspect of modern business, so when a client owes your business money, finding a way of recovering the debt without alienating the client is vital.  This is why finding a debt collection agency that will deal with the problem and still maintain customer goodwill is imperative, especially with so much competition in today’s market. 

Debt is not a Dirty Word!

Any smart business owner will be aware that it’s often necessary to borrow money in order to help their company reach its full potential and, nowadays, there is more choice and flexibility than ever before when it comes to accessing the necessary funding to grow a business.  However, here in the UK, we have a traditional and deep-rooted aversion to owing money.  Some business owners never borrow money, others do so only when they are planning to increase their business, whilst some opt to use their personal funds or trade credit in order to achieve liquidity.

Avoiding Bad Debts for Business Owners

Any small to medium business owner here in the UK will be aware of just how important it is to maintain a steady cashflow.  After all, this can have a huge impact on your company’s ability to thrive and grow, especially in these uncertain economic times. 

Any bad debt is likely to have a negative effect on a company’s profits so today we’re taking a look at some techniques business owners can use to avoid bad debts and protect your business from financial strife and even bankruptcy.

The Advantages and Disadvantages of Debt Financing

Whilst most small to medium business owners will try to avoid falling into debt, with many finance experts considering debt to be avoided at all costs, this really is an over-simplification.  Not all debt is bad and taking on a debt can be beneficial to your business in the long term, depending on how you plan to use the borrowed money and the cost of borrowing it.  Under the right circumstances, this is a leverage that can help you to preserve cash and put an otherwise illiquid asset to work on building your net worth.

Statute Barred Explained

Here in the UK we have legislation that gives a creditor a specific deadline to start court action to recover money owed to them.  This means that if the creditor waits too long to begin the debt collection process, they may not be able to resort to the courts to recover the funds and the debt becomes “statute barred”. 

This legislation is designed to ensure fairness for the creditor so that they don’t have to wait for so long to take action that vital paperwork may have been lost, or the debt forgotten about.

The Rising Cost to SMEs of Collecting Debts

According to the latest research conducted by BACS (Bankers’ Automated Clearing Services, the company which runs Direct Debit here in the UK), Britain’s smallest businesses experienced a massive increase (more than 150%) in recovering past due invoices in 2018.  It’s estimated that the average annual cost to a small company in obtaining money owed is £9,000 and more than a third of small businesses are left waiting for payment for two months beyond the due date.