Small and medium enterprises (SMEs) across the UK are suffering as a result of late payments. When is the right moment to call time on these late payments to ensure business viability?

Hiring a professional debt collection agency may be in your best interest as they can recover your debts quickly and efficiently, without you having to expend any valuable time and money.

1 - Overdue Invoices Are Impacting Your Cash Flow

Late payment on invoices causes a handful of problems - it affects your cash flow, and you then have the problem of chasing payments which incurs costs and resources. Overall, the customer is costing you more due to use of resources and time allocated to the problem.

Accountancy firms across the UK have found that the longer the invoice goes unpaid, the less likely it is to be paid at all. A debt collection agency will collect your overdue receivables in a professional manner, saving you and your business time, money and energy in the process.

2 - Your Accounts Show Invoices Older Than 60 Days

If you are frequently finding a number of accounts where payments are not being made after 30 to 60 days, it’s the right time to contact a collection agency. After 60 days, these accounts are considered ‘delinquent’.

Contacting a debt collection agency at this stage allows the agency to work on recovering these funds from debtors on your behalf. If you wait any longer than 60 days, you may incur more difficulty in collecting your debts.

3 - Your Debtor May Be Insolvent

Any visible, tell-tale signs such as repetitive promises of payment, bounced cheques, or no response to frequent communication attempts, suggests that debtor is experiencing severe cash flow problems and may even be insolvent. If you don’t act on time, your debt may get written off and you will lose out on recovering the money owed.

Whilst these signs suggest you require the assistance of debt collectors, it is also valuable to do some research and hire one suitable for you. At K2 Collections, we can assist you with debt collection and debtor tracing. Get in touch today to discuss how we can help you.