UK Businesses Urged by Debt Collection Experts to 'Act Now or Pay Later'
Lancashire, UK - (NewMediaWire) - April 4, 2023 - Federal Management, a prominent UK debt collection agency, has urged businesses in the UK to take swift action when confronted with late payments. This appeal comes as late payment continues to become a growing problem across the UK.
Federal Management has advised Small Businesses to "act now or pay later". This urgent call for pro-active action comes after the release of the UK's Federation of Small Businesses (FSB) latest report.
The report called "Time is money" has revealed startling late payment statistics within the UK's small business community. The FSB survey unearthed a shocking 52% of small Businesses in the UK have experienced late payment in the past yearly quarter.
In addition, it was revealed that 25% of Small Businesses reported an increase in late payments. The sectors that are suffering the most include construction, education, administrative, scientific, logistics and IT.
The FSB's "Time is money" report was undertaken to find out the true extent of problematic late payments on small businesses in the UK. The UK has around five million SMEs and some experts predict millions of jobs could be at risk if urgent professional debt collection action is not taken.
Businesses turning to Debt Collection Agencies
UK Debt Collection Agencies are assisting minimise the wide scale issue of late payment. Millions of pounds are being recovered every month. One of the leading Debt Collection agencies heading the fightback against late payment is Federal Management.
Marc Curtis-Smith, Managing Director of Federal Management has called upon Business owners to act quickly when dealing with unpaid invoices: "Late payment was destroying small businesses even before the pandemic. The pandemic seems to have just exacerbated the issue and made it worse."
He continues "It really does pay to act quickly when faced with an unpaid invoice. It is basically a case of act now or pay later' when it comes to unpaid invoices.
"Every day at Federal Management, we speak to small business owners. Whilst we can help most recover what they're owed, unfortunately for some, they leave it too long to act."
In a previous industry news piece, it was stated that Debt Collection Agencies could save up to 500,000 SME's highlighting the severity of the issue.
The FSB's report also showed that:
37% of SME's applied for credit to manage their cashflow.
62% of the public say businesses should be paid within a week.
55% of the public would support more controls.
The report also made a multitude of suggestions for the UK government to act on. Amongst those recommendations is calls for large firms to publicly commit to maximum payment terms to small business suppliers in law by 2027.
The cost of the UK's of unpaid invoice epidemic
The issue of invoice late payment in the UK is nothing new. It is said that hundreds of thousands of businesses are facing going to the wall in 2023.
Another recent survey showed that there is a linked mental health cost to Business owners caused by late payment. Unpaid and late payment of invoices does not just have stress and emotional consequences, they also drain resources and cash-flow.
The British government has taken various initiatives to try to combat the flow of late payment but to little significant effect.
Rising energy costs have already hit many Businesses hard with thousands closing over the winter months. An energy cost price cap introduced by the UK's energy regulator Ofgem does not include Businesses.
Commenting on the Time is money report, FSB Policy ChairTina McKenziesaid: "Enough is enough. Late payments in the UK have continued to spiral out of control, while since 2019 Ministers lost the momentum and enthusiasm to make a difference.
"We now need to reinvigorate this agenda, and to push for growth and productivity the best way to do this is to sort out the UK's poor payment culture.
"Our report highlights the urgent need for change and the importance of fair payment practices and sets out a clear set of reforms.
"Small firms are already being stretched beyond their limits with rising energy bills, rampant inflation, and a mounting cost of living crisis.
"Cash flow is already tight, and that is compounded by being kept waiting months for invoices to be paid, which a serious roadblock to growth and investment.
"This also hinders productivity due to the excessive time and effort expended on chasing late payments."
UK Businesses turning to Debt Collection specialists
The draining task of chasing unpaid invoices is time consuming, stressful and costly. Stacks of valuable time can be spent chasing unpaid invoices and overdue accounts.
Not only does it cost in terms of tasks performed, but it also costs in terms of time. Time that can be utilised with more profitable tasks and focusing on actual paying customers.
Thousands of Small Businesses are turning to Professional Debt Collection Agencies for help consequently. The UK Debt Collection industry has provided support for many enterprises of all sizes to help the battle with late payments and unpaid debts.
Collaborating with a Professional Debt Collection Agency in the UK can be of massive benefit. Whether it is on an ad-hoc basis or regular, there are efficient solutions to boost business profitability. Whether it is for nationwide or international debt collection. Expensive lawyers and unpaid invoice legal action is now the very last resort for many.
Noteworthy UK Debt Collection services
Not all debt collection agencies are the same. A Professional partner is the only viable solution for Businesses in the UK. Most businesses are mindful of their brand so working with a specialist is viewed by most as the only option.
Commercial Debt Collection - Federal Management are the UK's trusted and go to experts for B2B Debt Collection. A well established and FCA regulated Debt Collection Agency, they collect millions of pounds of Commercial debt every year.
Personal Debt Collection solutions These can be a game changer for public serving businesses. Frontline Collections is the standout solution for Consumer and Personal debt collection. As a debt Collection Agency in London, they assist dentists, medical debt and private schools amongst others.
Top tips for Businesses to avoid non-payment of an invoice
Experts at Federal Management's Small Business Debt Collection Team has provided basic guidance and tips. Prevention is viewed as easier than a cure.
Make payment terms clear outset to avoid any confusion.
Make it as easy as possible to pay unpaid invoices via a variety of payment methods.
Use accounts software to automate reminders
Have a clearly stated policy for late payments as a deterrent.
Engage with the customer. Don't be afraid to call them!
Stalling on acting with unpaid invoices can present a considerable risk to any Business. By implementing simple measures such as those listed, late payments can be kept to a bare minimum.
For more info, please contact:
Marc Curtis-Smith
mcurtis@federalmanagement.co.uk
