Debt Collection Agencies could help save thousands of Welsh Businesses

Many Businesses in Wales and across the UK are facing a tidal wave of unpaid invoices due to the current economic crisis. According to Red Flag Research report by insolvency firm Begbies Traynor, around 17,000 Welsh Businesses are in financial distress.

Constant issue for Welsh SME’s

The frustrating issue of Small Businesses not being paid is nothing new. Research shows that as far back as 2016, the problem of Small Business late payment has been a constant headache for Businesses in Wales.

The impact of not getting business invoices paid for Small Businesses is can be huge, even fatal in some situations. Thousands of Businesses have gone insolvent due to unpaid invoices.

The Covid-19 pandemic has only added weight to the problem. Along with the cost-of-living increase, fuel and energy price increases and soaring inflation.

One of the hidden key issues created by the non-payment of invoices is the actual time spent chasing payment.

Welsh Businesses need a solution

It is estimated that nearly half of all smaller suppliers in Wales are being paid late by their customers. The financial problems that many Welsh Businesses could be eased by sourcing a Professional debt Collection solution.

The cause of unpaid business invoices can vary greatly but the solutions are limited. Using solicitors to recover unpaid invoices is very expensive and protractive. Many courts are still working off a backlog caused by the pandemic. Solicitors will likely charge per hour for their efforts with no guarantee of success.

As a result, there has been a surge in Businesses turning to Professional Debt Collection Agencies as a cost-effective solution. Small Business Debt Collection is more popular than ever and it is easy to understand why.

Working with a Debt Collection Agency

Choosing the right Debt Collection Agency to partner with is essential to the success of this.

Not all Debt Collection Agencies will have the professionalism businesses require so this needs to be factored in to decision making when comparing debt collection services.

Results, fees and professionalism are all major considerations. Overly aggressive and unprofessional Debt Collectors should not be an option for any Business.

The Credit Services Association is the only Debt Collection Trade Association for the industry. All self-respecting Debt Collection Agencies are members of the CSA.

Typical types of Debt Collection Agencies

Typically, there are two main sub sectors within the Debt Collection market. There are further specialist sectors but typically these are the two main areas:

Business Debt Collection

This is where goods or services provided to a Business but not been paid for. This can be unpaid invoices, overdue accounts or unpaid subscriptions fees. There is legislation governing unpaid Commercial Debt such as the Late Payments of Commercial Debts act.

Business Debt Collection is an essential tool for any Business. For many it can be the difference between making a profit or loss. Professional and compliant Business Debt Collection solution can be of massive value to a company.

The most notable Business Debt Collection Agency is Federal Management. They are a highly accredited and award-winning debt collection agency that recover debts nationwide. As an FCA regulated company, they act professionally at all times and recover debts on behalf of Small Businesses through to large PLC’s.

Personal and Consumer Debt Collection

Personal debt collection is debt that is owed by an individual. Usually, it is monies owed for goods supplied or services rendered.

This can be anything from unpaid fees owing to dentists, vets, private schools. The other side of this niche is the call centre type of debt collection agency that chase monies owed to utility companies and finance firms.

The consumer sector is more heavily compliant. A Professional approach is essential by any Debt Collection company.

The leading name within Personal Debt Collection is Frontline Collections. A National Personal Debt Collection specialist that helps Private sector Businesses and Individuals collect personally owed debts on a low fixed fee basis.

Their clients include the likes of Private Schools, Vets, Dental practices etc and they can even help Individuals recover monies personally owed to them.

Debt Collection in Cardiff is no different to say Debt Collection in London. The same laws prevail and locality should not be an issue.

When should Businesses act?

Businesses are warned against waiting too long to take action when it comes to being owed monies. No Business would lose a customer just because they need to pay for what they have had.

Furthermore, no business wants a customer that does not pay so pragmatic approach to debt collection is recommended by many Small Business experts.