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Debt Recovery Solutions for SMEs

Here at Access Credit Management, we’ve already told you how important steady cash flow is for business, especially for small to medium enterprises (SMEs).  According to recent research, the future of SMEs here in the UK could come under threat due to the amount of late payments owed to them.  SMEs actually play a pivotal role in the UK and European economies.

According to research carried out by BACS (Bankers’ Automated Clearing Services), the organisation responsible for the schemes behind the clearing and settlement of UK automated payment methods, more than half of SMEs experience late payments with many owed more than £40,000 in overdue payments.  A debt of this size can make it very difficult to manage a business’s cash flow and in many cases, this will lead to insolvency. 

Businesses here in the UK are encouraged to sign the Prompt Payment Code to demonstrate their commitment to adopt a prompt payment culture.  However, this is voluntary and there’s a culture within the UK economy whereby larger companies seem to exploit their position by paying their smaller suppliers late as a matter of practise. 

These overdue payments serve to starve a smaller business of money and will often lead to costs being incurred due to the use of overdraft facilities.  Overdue payments can also lead to more money being spent by the small business in pursuing late payments.  When companies are paid late, this often results in them paying their suppliers late too which adds to a vicious circle of late payments. 

This can have a knock on effect which sees many smaller businesses folding while the larger companies (which are often responsible for the initial late payments) have the financial wherewithal to weather the storm, leaving them untouched by the cycle of late payments. 

For a small business, making the decision to pursue a debt can be difficult and confusing.  The business owner will need to consider the amount owed and how much it’s likely to cost to recover that amount.  Sometimes it can seem like a counterproductive activity, especially if the amounts involved are relatively small.  Using the services of a debt collection agency may look like the best option in order to recover the debt, but this needs to be carefully balanced against the fact that those services may cost as much, if not more, than the amount owed. 

This is why, here at Access Credit Management, we operate a “no win, no fee” policy when it comes to debt recovery.  We have years of experience when it comes to slow paying debtors and we’re dedicated to secure and recover outstanding commercial debts from companies here in the UK and overseas.  We’ll take a look at your individual circumstances and offer you a detailed evaluation of the problem and take a realistic approach on the likelihood of securing a successful outcome for you.  This will give you all the information you need to make a decision on whether or not to pursue the debt and the peace of mind provided by knowing that if the debt is not recovered, you won’t be wasting you hard earned cash.