There is nothing more frustrating for those running an enterprise than winning the business, delivering the work and then failing to get paid for it.
Those who are late in paying and those who refuse to pay cause so much frustration and worry for businesses.
But with the help of a specialist, businesses can start to tackle these problems and turn around a negative situation to something that it is much more positive.
Else Solicitors in Burton-on-Trent is a firm that specialises in debt collection.
Chris Else, the firm’s Managing Partner said: “One key to tackling this problem is to find out why customers have not paid and put in place processes that means that it will not happen again.
“A key part of this work is tracing the debtors, who may have moved or who may be operating under a different name.
“Having a third party involved can be key – it means that debts can be chased without that affecting the relationship between the two businesses.
“All of this can minimise the frustration and worry caused by late payers and debts and some firms can find they have more cash to inject into the business than they thought by a third party successfully chasing up debts that firms had given up on.
“One of the things that is key is that we can separate those who ‘can’t pay’ from those who ‘won’t pay’ before you consider legal action thus reducing the business’s risk.”
There is also a potentially more significant time and cost opportunity from late payment and bad debt. If managing directors and senior finance people are spending their time and energy on that, they will not be focused on growing the business.
It is an important area to get right and if you do so you can remove an important drain on management time and energy and direct that to growing your business.