Signs you need to outsource late invoice collection

Signs you need to outsource late invoice collection

 

Running a business is far from being easy. You have to hire and lead employees, make hard decisions that can possibly affect the lives of others, and overcome risks. These are only some of the realities of your situation. As a business owner, you are also the guardian of the cash flow. One of the most frustrating things you have to deal with is unpaid invoices. Bills that are not paid in a timely manner affect the cash flow and, consequently, kill your business.

Chasing down payment for late invoices though London is not something you are looking forward to. Somebody has to do it. But that somebody does not have to be you. The best thing you can do for your business is hire a late invoice collection company in London. Such a company can help you keep your business afloat. Knowing when it is time to turn in your accounts to debt collectors isn’t easy. Here are some signs that might help you decide.

Failure to pay an invoice

There are times when customers are willing to pay their invoices, but they do not have the money. This is an unfortunate situation, yet it happens quite often. You cannot assume that customers are freeloaders just because they did not paid their invoices on time. There is the possibility that is was not their fault. Send an email to remind them that their invoices need to be paid.

Other times, customers send in checks that bounce back. The result is that the transaction cannot be finalised because there are not sufficient funds available. If you have not had any success, it is time to consider hiring Legal Debt Collectors. They can help you recover your money. While you concentrate your attention on running the business, the collections company will handle the debt collection process.   

Customers do not answer

You have been notified by the billing department that customers did not pay their invoices and that they do not answer phones or emails. What do you do now? Sending collections letters will not solve the problem. Hiring a late invoice collection company will, on the other hand. The reason why debt collectors are so good at recovering delinquent accounts is that they know which tactics and strategies work. If clients do not want to pay anymore, do the smart thing and hire a collections company. Do not let the unpaid invoices pile up on your desk. 

The debt is over 90 days past-due

An account is considered past-due when a payment is missed. It is not the end of the world if your customers are a little bit late. However, if the account is 90 days past-due, there is a serious problem. When invoices remain outstanding for more than 90 days, your business’ cash flow is affected, especially if you have no reserves to rely on. If there is a delay in payment, you will not be able to pay salaries, utility bills and operating costs.

Collecting bills that are 90 days past-due is not something you can do. Even late invoice collection companies struggle a little bit to recover outstanding debt.  What you have to understand is that a collections company has better chances of recovering delinquent debts. They have better chances than you, anyway.

 

Steve Volk