Overdue Invoices a Problem?

Collecting past-due balances is one of the less pleasing aspects of running a business. However, without chasing up overdue accounts, you could find your company running into real cash flow problems that could jeopardise the security and even the future of your business. SMEs are owed an average of £39,000 and 50% of all UK companies are feeling the pinch of the economic downturn. The longer overdue invoices go unpaid, the greater the impact they can have on your company.

The Cost of Unpaid Accounts

A study conducted by the Department for National Statistics revealed that, after around three months, 75% of all unpaid invoices are settled. However, if left for another three months that figure then drops to 56%. The longer you leave it, the less likely you are to get paid. The industry that has suffered the most is the retail and distribution industry, which is currently, owed a whopping £16.6million in unpaid accounts.

However, all this is set to change. The EU Late Payments Directive is to be introduced in 2013. It is designed to combat the late payment for goods and services within the European Union. The main amendment is the inclusion of a 30-day time-limit for payment as a legal statute. Once that limit has expired and should the debt still not have been settled, companies can instruct solicitors, lawyers or debt collection agencies to recover the outstanding balance – at further cost to the debtor. In short, after 30 days, the debtor will have to pay the outstanding sum, plus any costs incurred by the aggrieved party in retrieving that balance.

Recover your Debts Today

While this may be good news for the future, it may not be of help to businesses who are waiting on payment now. What many are unaware of is that there are currently free services available to businesses of all sizes that will put you in touch with the right DCAs. If you are feeling the squeeze, thanks to unpaid invoices, consider contacting a company like ComparetheDCA.com, who can help you get back what is rightfully yours.

Choosing the Wrong Debt Collection Agency Often Results in Non-Recovery

As much as there are different types of debt, there are different types of debt collector. Recovering debts isn’t simply a process of walking into an office and leaving with an assortment of laptops. The type of debt you are recovering and your relationship with the debtor will both influence the type of DCA you choose.

Differences in Debt

Because each debt is different, you may find that some require specialist DCAs to recover them. It may be that the best way is through technology or even that you need the services of a DCA with knowledge of foreign debt-collection laws. Whatever your needs, finding the right DCA for the job can be a tricky process. Choosing the wrong one might result in you spending money on a non-recovery, leaving you in a worse position.

The system used by ComparetheDCA is much like consumer comparison websites. Simply upload the details of your debt through the website and you will receive details of which DCAs are most suited to your case. It’s a free service and DCAs that have signed up to the site are often able to offer more favourable terms than if you were to contact them directly. This is because, with more clients coming their way, they are able to reduce their prices accordingly.

Compare the DCAs

Using a well-chosen DCA also means that the impact on your business is drastically reduced. In seeking one out yourself, you will need to source them, attend meetings and decide if they are the people you want to represent you. By using the ComparetheDCA.com system, you can quickly compare the credentials of a number of DCAs and make an informed, on-the-spot decision – leaving you to get on with the job of running your business. In the meantime, specialist professionals can recover your debts swiftly, professionally and as amicably as possible.

www.ComparetheDCA.com

Overdue invoices are bringing down the UK business economy

Many UK businesses are bearing the brunt of the recent recession and the slow recovery in the form of cashflow problems. According to statistics released by BACS, the organisation behind Direct Debit, a large proportion of this is due to late payments for goods and services and overdue invoices. Consequently, these unsettled accounts have a ripple effect on what is an already-beleaguered economy, causing more financial struggles for hard-pressed SMEs.

Unpaid Invoices

According to NatWest, one in five companies is owed between £50,000 and £100,000 in unpaid invoices. Perhaps even more worryingly, the figures from BACS suggest that it is the larger corporations who are most responsible for this shortfall, owing SMEs around £24billion per year in late payments, leaving most SMEs thousands of pounds in the red due to unpaid invoices. In addition, the BACS study goes on to reveal that around 33% of larger businesses are late in settling their accounts, often as late as 52 days. The impact on the economy is also highlighted through the revelation that around 158million man hours are lost each year in chasing overdue accounts.

As if these figures weren’t startling enough, cashflow problems prevent businesses from thriving and expanding and, ultimately, prevent them from employing other people. There is far more to unpaid debt than just an outstanding invoice. The consequences are far reaching, effecting every aspect of British business.

 

Prevention is better than Cure

In the long term, prevention is better than cure. Businesses would be well-advised to implement incentives for their customers to pay on time, such as fast-payment discounts or additional charges in the event of late payment. 

However, there will always be instances where other means are required. The government are currently discussing the option to fast-track the EU’s Late Payments Directive. But until then there are free services, such as ComparetheDCA, through which companies of any size can find the DCAs that are best suited to their case. This is particularly useful for SMEs who want to balance their books before becoming another economic statistic.

www.ComparetheDCA.com  

Business to Business Debt Collection Agencies don’t knock on the door of your supplier – it works differently from consumer Debt collection.

When the words ‘debt collector’ are bandied about, most people will have an image of burly men kicking a door down and walking out with a television. While consumer debt collectors may indeed gain access to premises and repossess items that are equal to the value of an incurred debt, the process of B2B debt collection is entirely different.

The main difference between consumer debt collection and the recovery of debt from one business to another is the focus on amicability. It may be that, in spite of the debt, the businesses have a vested interest in each other. It may be that the debtor is a valued client of the other company. It may be that the businesses want to continue to work together in the future. Whatever the scenario, business to business debt collection is conducted professionally, politely and with the minimum of fuss, so that both parties may work together again, should they want to.

Hiring a Debt Collection Agency (DCA) does help to put some distance between the creditor and the debtor. By bringing a third party into the equation, the process is depersonalized, minimizing any feelings of antagonism between the two businesses. DCAs usually begin the process with written correspondence, either by email or letter. If these do not prompt any action, the DCA may continue to issue reminders through polite phone contact. A good DCA will know that it is important to keep the channels of communication open between both parties, whatever the medium.

Choosing the right DCA through ComparetheDCA.com can make the difference between leaving your debtor with a bad taste in their mouth or quickly resolving your financial problem and looking forward to doing business together again.

www.ComparetheDCA.com

Portfolio system allows businesses to upload a full ledger in one go

At ComparetheDCA.com, we know that you want to retrieve your unpaid debts with as little as cost to your company as possible. In the current climate, larger companies are often discriminated against, the theory being that the bigger the business, the more money it must have to spend on services. As a result, larger businesses are often charged more than their smaller counterparts for what is basically the same service. ComparetheDCA.com has developed a unique system that prevents distinction of this sort between businesses, whether they are large or small.

Unbiased Appraisal

The secret of this system lies in keeping the claimant’s identity out of the appraisal. It allows the business in question to upload an entire ledger in one go, and this is then sent to as many of the DCAs on the panel as the company wants. All the DCAs will see is just how much you owed and by whom, but the information provided gives no insight into your turnover or profit and, consequently, removes any potential for charging more because the client may appear to be affluent. We have negotiated great deals with all our DCAs and this method is the best way to take advantage of them. You will then receive the profiles of each DCA that is suited to your case, allowing you to compare them and decide which is best for you.

No Win, No Fee

Approaching DCAs directly, even if they happen to be on our panel, does not guarantee you these money-saving strategies. In approaching them directly you will have to reveal who you are and this could lead to overcharging. In addition, we can assure you that, through using ComparetheDCA.com, the DCA that you choose will begin work immediately. We are also able to offer a ‘no win, no fee’ within the UK to many of our clients – something that most DCAs now withhold.

Our ethos has been to save our clients money, offer them dedicated experts and give our support wherever possible. There are no sign-up fees or hidden extras, so call us today and let us help you recover what you’ve lost.

www.ComparetheDCA.com

Why do British companies not collect their overdue invoices?

Without doubt, the quantity of overdue invoices is having a negative effect on UK businesses and the economy as a whole. According to figures released by NatWest, one on five businesses is owed between, £50,000 and £100,000. With these sums impacting heavily on SMEs, the question remains: why do British companies not collect their overdue invoices?

Time…

Perhaps the biggest factor in collecting debts is time. The payment organisation BACS revealed that SMEs are forced to spend around half a day a week pursuing payments. This adds up to around 158million man hours every year spent chasing debtors – hours that could undoubtedly have been put to better use elsewhere. In dedicating time trying to settle accounts, businesses are losing man-hours in a climate where every second costs money. As a result, many decide to just sit it out and hope for the best.

…and Money

Another major factor is money. With overdue invoices hanging over them, many companies feel that they simply do not have the finances to spend on DCAs or pursuing other avenues of recovery. In addition, when the competition in virtually every marketplace is so strong, few companies want to risk their reputations by becoming involved in protracted legal cases.

However, what many business owners don’t realise is that there are free services through which you can find the right DCAs for the job. A company like ComparetheDCA.com can get you free quotes from over 20 DCAs, allowing you to source the agency that is right for your circumstances. In addition, they will have reached agreements with the groups on their panel, giving you access to special rates that you might not find should you contact a DCA directly. While prevention is always better than cure, there are resources available to allow you to recover what you are owed at minimal cost and with minimal impact on the daily running of your business.

www.ComparetheDCA.com

Late payers cause businesses to struggle

For SMEs and businesses in their first year of trading, late payments can hit hard. Too many delays and the financial situation can become intolerable and even be a contributing factor for business failure.

SMEs are owed an average of £39,000. Half of UK businesses are currently facing this situation – that’s 861,000 firms that are struggling to make ends meet because their customers aren’t paying on time. The hardest hit industry is retail and distribution, who are owed in excess of £16.6billion. The real surprise is that large companies that are the worst offenders, responsible for 48% of SME late payment debt.

What can you do?

You don’t have to put up with late payments. The EU Late Payments Directive is due to come into force in 2013, making 30-day invoicing periods compulsory. While we wait for the legislation to go through, there are organisations that can take the worry out of chasing late payments for you. There is no reason to suffer in silence – if you’ve done a job you expect to get paid for it. Rather than simply accept that late payments are ‘a fact of life’, you can utilise free services that help you to claim back what is rightfully yours. This service is available to businesses of all sizes, not just the big multinationals. So if late payments are starting to affect your business then it may be worth your while contacting a company such as ComparetheDCA.com, who can help get your business back on track.

www.ComparetheDCA.com