Unfortunately, one of the most common dilemmas faced by many business owners is delayed payments. When you own a business, there may be times when you will have to chase up unpaid invoices with clients. While it’s not easy, it is part of owning a business and is something that must be dealt with appropriately.
Those uncollected payments can cause a negative impact, including affecting the growth of your business and disrupting your cash flow. There have been a growing number of SME’s (Small and medium-sized enterprises) in Australia that has struggled to collect payments from clients in recent years, with many chasing up unpaid invoices for work that has already been completed.
A survey was recently conducted that found around 500 businesses are struggling to collect payments from their clients. 34% of businesses also found it even harder to chase debtors, half of those business owners were challenged by the debtors when they tried to collect payments. Sadly, today it seems a lot of debtors are using delaying tactics to avoid payments, stating they are either unhappy with the work or due to the economic climate they can’t settle their accounts.
It is imperative that all small business owners talk to their local debt collection agency with 60% of debtors who have outstanding invoices stating that due to the cost of living they don’t have enough money to pay on time.
Why is debt collection so important?
All businesses, small or large need to be paid for their service or product to keep them running, as those delays in payment can reduce a business’s growth. SME’s and large corporations alike are susceptible to bad debts at some point, while large corporations can handle these situations more effectively, small businesses rely on payments so they can keep their business running.
Without funds a business can run low on inventory which can affect both their stock levels and their profits, businesses can and do collapse due to insufficient cash flow. As debt rises, SME’s can struggle to pay off their obligations, but proper debt collection can increase cash flow which in turn keeps your business afloat.
How can SME’s improve their debt collection?
If you are a small business owner, you may not have the expertise to chase clients who owe you money and trying to collect delayed payments can be challenging, especially for those not used to chasing up clients. This can become more challenging if a client has a large outstanding invoice that requires payment immediately so you can keep your business operating smoothly.
If you have tried everything you can think of and you have still not received payment, it may be time to look for help. It will give you that added piece of mind when you know professionals are handling your debts. When you turn to the experts in debt recovery, you can start to relax and concentrate on your business and other clients. When you are in small business, you don’t want or need the added stress and strain of having to chase after bad clients continually.
Calling for help.
Having one outstanding invoice is bad enough, but when you have two or three it can become complicated, you want to spend your time running your business and seeing it grow, not chasing invoices. This is where debt recovery specialists can help, they know how to deal with bad clients and can collect outstanding payments on your behalf. Debt collection agencies such as Boston Commercial Services know what they are doing, they know their way around those legal issues and can help your business with the collection and repayment of customer debts. Call the experts today!
- Key pieces of information you need to get paid faster
- How better debt recovery process improve business cash flow