Consumer Debt Collection
UK consumers are facing increasing financial difficulties with increased restrictions on credit and uncertainty within the UK employment market. For those businesses providing goods and/or services to the consumer sector, sensitivity needs to be displayed when dealing with the sector and ultimately collecting outstanding monies from private individuals. This of course has to be balanced against the need to collect money due when that money can be crucial to the ongoing financial health of the business.
The SME marketplace is particularly susceptible to the downturn in the economy with many businesses now facing cash flow problems and difficulties in getting paid. The number of business failures in 2009 is expected to grow by 59% from the figures we saw in 2008 with 1 in 20 of all small businesses likely to go bust. Of the 4.7 million SME’s in the UK, 200,000 will fail over the course of the next 12 months. Compounding the problems for the SME sector is the continued low level of bank lending with 32% of businesses reporting restrictions in their access to capital.
One of the quickest ways to improve a business’s cash flow is to collect outstanding monies more effectively. Media reports in 2008 estimated the amount owed to British small and medium sized businesses to be £18.6 billion. The average company loses 17 days every year simply trying to collect the money due to it for the goods or services it has provided in good faith.
Putting the ‘ducks in a row’
For many small businesses, collecting outstanding payments, particularly from a consumer client base, can be time consuming and sometimes fruitless. The present economic climate is unlikely to make this task any easier, with many consumers prioritising their expenditure on a needs basis.
It is those businesses which have effective credit management policies in place which will be better able to survive the economic downturn. You can find a simple downloadable guide entitled “7 ways to reduce your business’s debts” on our website which outlines the activities a business should consider when putting together its credit management policy.
Consumer Debt Collection Agency
There is likely to be a multitude of reasons as to why your customers have not paid. Some will have forgotten, some will have fallen on genuine financial hardship, and others will be deliberately delaying or avoiding payment. Understanding the financial predicament of each customer together with their priorities will ultimately help improve the performance of any collection activity.
A consumer debt collection agency is experienced at identifying the different customer segments and applying appropriate collection strategies to each.
Choosing the right debt collection agency
As a recognised world leader in the field of credit management, Intrum Justitia has over 90,000 clients ranging from large multi-national businesses through to small privately owned companies.
We have developed a wide variety of campaigns throughout our 80 years of trading, and these encompass a huge array of payment methods. Our contact strategies include letters, telephone calls,
e-mail, SMS etc. and additionally, should certain customers be difficult to locate, we can offer tracing facilities, and if necessary, legal activity can be taken if authorised to do so by the client.
With a dedicated consumer collection department specialising in this area of debt and collecting close to £1m every week for our clients, we understand the marketplace exceptionally well. The department is further divided into vertical sector teams so that the team members gain a much greater understanding of the clients they are working for and the sectors they operate in.
For further information regarding our consumer debt collection service, please go to On Demand Collections or call us on 0870 414 0044.
