According to a report commissioned by Intuit QuickBooks in 2019, 56.4 million hours a year were used to look for overdue and late payments. The study showed that from 500 businesses, 56% chased late payments out of their regular working hours. Although it’s tempting to continue chasing overdue payments using an in-house team, the time-consuming process can be a costly affair for SMEs and employees alike.
Chris Evans, Vice President at Intuit QuickBooks said: -
“Cash is oxygen for small businesses and without it they cannot breathe. The combination of chasing invoices and bad payment practices means small businesses can run out of accessible cash. This has a real impact on their ability to take on new work, pay suppliers, their employees or themselves on time and can add unnecessary extra stress into their lives.”
Outsourcing Debt Recovery
Once an invoice surpasses its credit terms, the likelihood of collecting the debt decreases over time. Turning to a specialist debt recovery agency once you feel your efforts have been exhausted can be another avenue for your business to explore.
At ADR-Legal we have a dedicated team giving each case and client the time and attention needed to solve the issue. We know that outsourcing debt recovery can feel ominous, many businesses may feel like they would lose control and struggle to trust other companies liaising with their client without tarnishing their customer relationship. At ADR-Legal pride ourselves on operating in a fair and ethical manner, with our client’s reputation at the forefront of our practice.
By introducing a debt recovery agency to your collections process you can ensure that overdue payments are dealt with in a swift and cost-effective manner. The time saved alone can improve your cash flow and leave staff to concentrate on other areas within the business.
The Legal Route
Due to the time-consuming and costly nature of following the legal route, this is often considered a last resort. It's important to remember that customer relationships will most likely be damaged when taking legal action and for this reason, each case should be evaluated on an individual basis.
However, a firm approach using this method can be effective in many cases. It’s often seen that a letter before action is all that is needed to persuade payment, meaning the full route is not needed.
At ADR-Legal our specialist team can advise clients on all of their options to recover money owed to them. Our highly trained staff can offer expert and practical support whilst providing our clients with a stress-free service.
If you would like to discuss your debt recovery options with our expert advisors, please call 0161 4140045.