B2B Debt Recovery – 5 facts to consider
B2B Debt Recovery – The benefits
When it comes to running a business, B2B Debt Recovery is often an afterthought. If a Business is owed money by another Business then it is essential to have an effective process in place. If reminders have been ignored and a reasonable amount of time to pay has been give, B2B Debt Recovery is the best option.
The benefits of using a B2B Debt Recovery service come in many forms. The process of recovering a Business Debt can be complex. If not done correctly, it can prejudice the actual debt owing. It is also critical to ensure that only a Professional B2B Debt Recovery service is used. The days of overly aggressive B2B Debt Recovery tactics are frowned upon. Burly men turning up unannounced demanding payment face to face can be viewed as unprofessional and something can be deemed as menacing in the eyes of the law as it can be viewed as creditor harassment.
We thought it helpful to compile a list of the top reasons why a Business should consider using an effective B2B Debt Recovery solution.
B2B Debt Recovery advantages
- Monies recovered faster – the introduction of a Professional B2B Debt Recovery service can help a business get its invoices paid faster. The sooner a debt is recovered, the better for the business that is owed the money. An efficient b2b debt recovery agency will help achieve this.
- Cost effectiveness – Time spent chasing unpaid invoices is wasted time. It is simple as that. Not to mention the stress and frustration it causes. An example is: if a business has one experienced credit controller paid for example £25k P.A. and they spent 25% of their time excessively chasing unpaid invoices, that is costing a business £6,250 per year at the very minimum. Not to mention the cost of phone calls, letters etc Working with a professional and proficient b2b debt recovery agency would probably halve that at least dependent on the volume of overdue accounts.
- Expertise and proficiency – Expert B2B Debt Recovery specialists are well versed in the tactics a small minority of Businesses use to delay or avoid payment. This expertise can mean the difference sometimes between getting an invoice paid or not getting it paid at all.
- Flexible and direct approach – A B2B Debt Collection specialist can negotiate better repayment terms than many credit controllers. They will be more results driven and diligent as well as experienced. They will ensure the margins for a successful recovery are at a peak.
- Valuable partnership – Working with a specialist B2B Debt Collection solution can offer additional benefits also. They can often help improve a Businesses terms to streamline the whole credit control process. Prevention is often more effective than a cure
Effective B2B Debt Collection solutions
It is critical to remember that not all B2B Debt Recovery and B2B Debt Collection solutions are the same. Not all firms have the same processes, charging structures and general business practices. Some firms are very aggressive in their approach to debt collection, specialising in immediate face to face debt collection remedies. Intimidating debt collection of a physical nature is illegal in the UK and is frowned upon by any respectable Business.
Any trusted and professional B2B Debt Recovery solution will have relevant accreditation’s and be appropriately licensed. They will usually be a Limited Company and have a track record of delivering results. Positive reviews also, not just over a few months but reviews received over a few years at the very least.
Using a Debt Collection Agency is a very effective method of recovering unpaid B2B invoices but like any business sector, there are the good, the bad and the downright ugly. It is imperative that a Business adopts a diligent approach. A successful collaboration will only happen with a productive, professional and persistent B2B Debt Collection solution.