How late is too late when it comes to chasing payments?
It is clear that SMEs are still struggling when it comes to chasing late payments.
Research by Xero has found that late payments cost UK small businesses £1.6bn last year (1), whilst NatWest has found that, in the same year, more than a third of businesses have been hit by payment delays (2).
The impact on growth and innovation can be significant.
Regional impact
We are pushing against this trend, working closely with businesses in the region to ensure they keep a finger on the pulse of late payments, create strategies to deal with them and help avoid lost income.
The North East has long been renowned for its industrial strength and entrepreneurial spirit, and the region’s strong association with industry goes back many years.
A whole host of prestigious companies set out their stall on the banks of the River Tyne, Wear and Tees, and these businesses had a reputation that spanned the entire globe.
Today, the region is a leading destination for manufacturing, engineering, digital and life science companies (to name but a few), with the business community consistently at the forefront of innovation and investment.
Cash is king
In the midst of all this growth, the significance of maintaining a healthy cash flow cannot be overstated.
Colin Churchward, partner in our debt recovery team, says the firm is seeing an increased demand for its debt recovery services, with businesses struggling with cash flow due to late payments: “Late payments are very common. It can be tempting to give in and accept it as part and parcel of doing business, but it doesn’t have to be.”
Colin said: “As a business, we’ve helped numerous organisations across the region move forward. Everyone at Muckle is enthusiastic about the North East and wants to see it thrive.
Colin, who specialises in providing public and private sector organisations with advice on debt recovery strategy and risk management, is proud of the team's expertise: "We’ve got real capability in debt recovery; our team includes people with a lot of different disciplines, which allows us to provide an expert approach.
“Our clients tell us that chasing customer payments is a significant distraction from their businesses’ day-to-day running. But now isn’t the time to be complacent - your customers will likely have multiple creditors. Businesses that are proactive with their debt collection will see their invoices paid first."
“If you’ve already asked for payment but have not received it, then warned you’ll escalate and still have not been paid, then you need to seek help.
"Using a professional service to collect payment will save you time, money and resources; with the right invoice recovery strategy in place, it’s easy to take back control.”
(Muckle) Collect your debts
Muckle’s legal expertise can make invoice recovery fast, efficient, and, most importantly, compliant.
Colin says: “We’re able to quickly assess your outstanding invoices, make recommendations and help you apply compensation, late fees or interest to the debt. We’re professionals, so you don’t have to worry about a heavy-handed approach damaging your client relationships.”
Debt collection is becoming ever more sophisticated, with technology speeding up the process, using insights to find the best way to recover monies owed.
We are leading the way in debt recovery with our easy-to-use online tool – Muckle Collect. The online portal allows businesses 24/7 access to submit and manage outstanding debts.
This makes it easier than ever to log each invoice, agree on a strategy for recovery, and track progress – either for a fixed cost or on a ‘no recovery, no fee basis’ basis.
References:
1) Xero