A Beginners Guide to Business Debt Recovery
When you're running a business, making sure your customers pay their bills on time can be very difficult and a huge drain on resources; especially if you only have a handful of staff or are a sole operator. Unfortunately, many small businesses are forced to close their doors within 12 months of starting up, and non-payment of customer accounts plays a large part in forcing a business to close.
Non-payment is a serious issue for businesses of any size. Late or non-payment of debts can cause serious cash-flow problems, resulting in your business facing many problems of it's own - from unhappy staff to not being able to maintain supply-and-demand for other customers you may have. However, if you're experiencing problems with getting paid then there are several steps you can take to ensure your debt recovery doesn't impact too heavily on your business.
Trying to contact a customer or client about an unpaid bill can be difficult. Most contact is done either by phone or mail, and there is always the uncertainty about a letter being lost in the post, or a telephone message not being passed on, although in some cases it could be that the person you are trying to reach is simply avoiding you. However, contacting the customer is very important as there could be a genuine reason why the customer hasn't settled their bill, and you should always try to attempt to discuss the situation and reach an agreement. These could range from allowing the customer to restructure their repayments to writing off part of the outstanding balance.
Sometimes, however, it is necessary to consider legal proceedings against a customer in order to collect an outstanding debt. Taking legal action to reclaim an outstanding debt should be a last resort, and often the threat of legal action is enough to make your customers settle up. For some businesses, however, it can be difficult finding out exactly how to go about commencing legal action against a debtor. As a result, many outstanding debts find themselves passed to specialised debt recovery companies.
In the UK, there are many debt recovery companies available who can help reclaim outstanding debts, and these companies have the time, expertise and resources required to pursue customers who have outstanding debts. If you decide that legal action is necessary to reclaim an outstanding debt, companies such as Capquest offer solutions that can help reclaim your money.
One solution is to commission the debt recovery company to recover the debt on your behalf. For a fee - normally around 10% - the company will act on your behalf to work with the customer in order to find a mutually suitable solution for both you and the customer. Alternatively, many debt recovery companies will purchase the debt from you. In return, they will process the debt as their own and allow you to draw loans against the money owed to your business. This method is commonly used by businesses to improve cash-flow, but is also a useful method of reducing administration overheads.
It's important to be sure that if you employ the services of a debt recovery company, such as Capquest, then be sure that they are members of an accredited body. Most debt recovery agencies are members of the Credit Services Association, who are the only National Association in the UK for companies that are active in relation to unpaid credit accounts, debt recovery agencies, tracing agencies and allied professional services.
Related Tags: debt, credit, cash flow, capquest, debt recovery, business debt, credit services association
Andrew Regan is a freelance online journalist who travels extensively.
Your Article Search Directory : Find in ArticlesRecent articles in this category:
- The Secrets to Getting Low Down Payment Car Insurance
Upon purchase of a new car, there is almost always a requirement to buy an auto insurance policy as - The Wisdom Behind Auto Insurance Comparison Quotes
No one in his right mind would not go for a good deal. In fact, everyone is out on their feet and ru - The Benefits of Auto Insurance Comparisons Florida
Insurance can be expensive. This is something everyone knows about especially in the sunny state of - Auto Insurance Florida: The No-Fault Policy
There are different kinds of car insurance offered by a wide range of providers today. Different sta - Finding the Cheapest Auto Insurance Companies
Everyone is asking and searching for the cheapest auto insurance companies available today. Consider - How do You Compare Private Health Insurance Cover in Australia?
Deciding what is the best and most affordable private health insurance cover can be easy if you take - How Payment Protection Insurance Was Mis-Sold
For over six years the issue of Payment Protection Insurance (PPI) and how it was mis-sold to custom - Finding Quotes For Auto Insurance Online
One of the many concerns when you are shopping for auto insurance is being able to get access to quo - How You Can Find the Best Auto Insurance Online
When it comes to renewing your car insurance you are going to quickly discover that there are a numb - Guidelines For Searching For Auto Insurance Online
The internet can be a great source of discounts and values related to auto insurance. However, many
Most viewed articles in this category:
- Trading Forex With Pivot Points
Forex Pivot Point Trading are used today by Forex Traders and are calculated on the previous days mo - Where To Search For Free Grants
Where do you look for free grants? The search must be thorough or it could be an exercise in futilit - The Connection Between High Blood Pressure and Salt
We are a society of Salt Addicts. It cannot be denied. When you look at the things we do and the pla - Tips For Avoiding HYIP Scams
Before knowing about HYIP Scams, refer to the functioning of HYIP or "High Yield Investment Programs - Getting Credit After Bankruptcy
Consumers do not have to live sans credit following a bankruptcy. By following certain steps consume - Tips For Choosing A Credit Card
Are you looking for that perfect credit card? If so, you may be confused about what exactly to look - Cheap Car Insurance For Teens Online
Many elements determine a car insurance policy. Car insurance companies look at the person's age, hi - What Exactly Is Free Grant Money?
You can apply for free grant money from various government agencies. But where exactly does this mon - Small Business Owners Marketing and Customer Service
Marketing can be time-consuming, but it doesn't have to be hugely expensive now, thanks to the Inter - Apply Online For A Credit Card - How To Choose A Card?
The best type of credit card for you will be dependant on how you intend to use the credit card. Are