Many often wonder, what is the best way to retrieve all my unpaid invoices? The answer is commercial debt recovery. This route eliminates time and money wasted chasing debtors when you could be concentrating on what really matters – your business.
Here are 6 reasons why commercial debt recovery will be beneficial to your business:
Increase your company’s cash flow - quick
The importance of strong cash flow is aptly stated in the common expression "cash is king." Having cash within your business will put you in a more stable financial position with better buying power. Having cash on hand is critical. A positive cash flow is essential if you want to generate profit.
Reduce debtor days
It has been reported for some time now that on average the amount outstanding to small businesses by their customers equates to around 56 days of the average daily sales figure reported by such businesses. This same figure is also referred to as ‘Debtor Days’ and it is a Key Performance Indicator that needs to be tracked constantly.
56 days is almost double the 30-day credit terms that are common in business, four times 14-day terms, and 8 times 7-day terms.
Increased efficiency and productivity
Productivity is essentially the efficiency in which a company can transform resources into goods, potentially creating more from less. Simply put, higher efficiency equates to better margins through lower costs. This allows for better compensation for employees, more working capital, and an improved competitive capacity.
Save time and money
Saving time and money in a business is essential. Saved time allows staff to concentrate on other aspects of the business, making it grow and reach higher success. Saving money is equally important, saved money means more capital to inject in key areas of the business, such as sales, marketing etc.
Debtors don’t just put pressure on a company’s cash flow. Chasing down late payers is time-consuming and de-motivating for staff when they could be spending their time on more profitable tasks. The use of a Debt Recovery Partner is a proven way of collecting outstanding accounts effectively, resulting in prompt payment of an overdue account. By appointing a third party it forewarns your customer that the business is not allowing late payers to affect their cash flow and abuse your agreed credit terms.
Professionalism and integrity
Remaining professional throughout the credit control process can be tough, especially when debtors are refusing payment or being stubborn. This could ultimately affect the relationship between the debtor and business, resulting in a loss of sales and a dent in company reputation. Whereas professional debt collectors handle cases very carefully and professionally, making sure that you maintain the commercial relationship between you and your debtor throughout the process. They will maintain a level head and their ultimate goal is to collect the debt as quickly as possible.
Unpaid debts should not cause a huge strain on your business. If you want your debts swiftly actioned think about contacting Darcey Quigley & Co. We will ensure that collections are dealt with in the most effective manner and aim to recover your funds as soon as possible.
Contact us today to discuss your overdue accounts. We won’t take up much of your time but will free up a lot of your time.