Business Debt Collection
Commercial debt collection can be a time consuming and fruitless task for many small to medium sized businesses. Where that debt is a business debt (i.e. Business to business), the task of collection is further complicated by the fact that many SME’s will not want to damage their important client relationships, meaning the process of collecting outstanding payments can sometimes become a delicate negotiation.
Unfortunately this is a problem which is unlikely to go away. Media reports last year highlighted the fact that in January 2008, the amount owed to British small and medium sized businesses stood at £18.6 billion, an increase of £2.6 billion from 2007. Already the average company loses 17 days every year simply trying to collect outstanding payments and it is now the case that 1 in every 5 businesses employ someone specifically to collect its debts.
Business debt recovery looks set to play an increasingly important role in the credit management policies of all businesses given the current economic climate. It is those businesses with effective credit management policies and adept debt collection procedures which will be best placed to withstand the current economic recession. You can find a simple downloadable guide on our website, “7 ways to reduce your business’s debts” which briefly outlines the things you should be considering when putting together a credit management strategy.
With the best will in the world however, at some point most businesses will be faced with the prospect of having to collect outstanding invoices from their existing clients. Many of those businesses lack either the skills or resources to do it effectively and outsourcing this work to a commercial collection agency specialising in this area will free up the credit department to focus on other areas of the business.
Commercial Debt Recovery
There may be a myriad of reasons why your customers have not paid. Some may be having financial difficulty, some may simply have forgotten to pay your invoice, whereas other companies may be deliberately avoiding or delaying payment. The ability to understand which customer is which and to apply an appropriate collection strategy based on this analysis is key to both maximising your collection results and maintaining your valuable client relationships throughout the process.
A commercial collection agency is experienced at recognising the differing customer groups and applying the appropriate collection path to each.
Business debt – choosing the right commercial collection agency
Intrum Justitia is a recognised brand throughout the world as a leader in credit management services. Over 90,000 clients throughout the world use us to help them improve their cash flow and long term profitability. Those clients range from large multi-national businesses through to small privately owned companies, all of them different and all of them with their own requirements.
With over 80 years in collections we have developed a wide variety of campaigns which encompass a spectrum of the most effective contact techniques combined with self serve web capability and a wide range of payment methods. Our contact strategies include telephone calls, letters, e-mail, SMS etc. and are used according to the appropriateness of each debtor. In addition, should some customers be difficult to locate, we can provide tracing facilities and if absolutely necessary, legal activity can be taken if authorised to do so by the client.
Intrum Justitia has a dedicated commercial debt collection department specialising in the complexities of business debt. This team is further split into client and sector specific teams to ensure that they develop a deeper understanding of the clients they work for and the sectors in which they operate.
For further information regarding our debt collection service, please go to On Demand Collections or call us on 0870 414 0044.
