Debt Collection for Merchant Wholesalers

Debt Collection for Merchant Wholesalers

The UK Wholesale industry is the 11th ranked sector for business growth in the last 5 years.

There are over 100,000 wholesalers in the UK, with a large percentage of these being small businesses or self-employed individuals.

Merchant wholesalers are responsible for buying goods, storing them, and then delivering them to suppliers that have purchased the goods.

Unfortunately, merchant wholesalers are at as much risk from non-paying customers as any other industry. Debtors will use a variety of excuses and tactics to avoid paying what they owe.

If you are a small business owner that has repeatedly been left without payment, you need a solution.

Frontline Collections has helped thousands of wholesalers of every type recover what they are owed. We provide the best debt collection for merchant wholesalers solutions available in the UK.

Debt Collection for Merchant Wholesalers – Our Top 5 Tips

Merchant wholesalers rely on payment as it means they can continue buying goods which in turn grows the business.

A steady income allows any business to thrive and grow. Merchant wholesalers are no exception to this, and with growth comes the ability to develop and increase the supplies they provide.

With this in mind, when a customer misses a payment date or is refusing to pay entirely, you need to act.

We asked our collection specialists to put together prepare a list of the best debt recovery tips for when payments are withheld.

Tip 1 – Stay Calm and Professional

When merchant wholesalers are not paid for goods they have provided,it can put a lot of pressure on the business, as well as the staff.

This pressure can often lead to those who are owed money making mistakes. This is something that a debtor may be counting on and could serve to justify them withholding payment (in their eyes).

Ensuring that you maintain a professional, firm and clear tone throughout the process will help your case.

Tip 2 – Collate All Relevant Documents or Evidence

We recommend that you gather all documentation that is related to the debt in question before moving forward with its enforcement.

This step is extremely important, as it will provide evidence from your side as to why the customer should have paid for the goods.

Invoices, contracts, payment terms, statements are all examples of relevant documentation that can be used.

Most businesses maintain a strong library of records in case any issues were to occur. If your business doesn’t already do this, it is worth spending the time to do so.

Tip 3 – Communicate with the Customer

Speaking with a non-paying customer is absolutely necessary, and is one of the most important steps in the recovery process. Every process of debt collection for merchant wholesalers will include this and must be done in the appropriate manner.

Having a professional conversation with the customer about why they haven’t paid can help you better understand their intentions.

Tip 4 – Issue a Final Warning to the Customer

If you have followed the above tips and have still not received payment from the customer, you should consider sending them a “final warning” letter.

When customers ignore communication attempts, this may be a clear sign that no payment will be forthcoming.

The final warning should be used to inform the debtor that you intend to use a professional service such as a debt collection agency if they do not pay.

Tip 5 – Speak to a Debt Collection Agency (Frontline Collections)

Using a debt collection agency for the recovery of unpaid wholesalers’ fees is extremely beneficial for your business.

At Frontline Collections, we have a long history of successfully recovering debts on behalf of merchant wholesalers.

We are known as the UK’s leading private debt collection agency and have enforced debt on behalf of small businesses, freelancers, sole traders and individuals.

Our debt recovery service delivers successful recovery actions and minimises the cost to the affected business.

Despite the challenge that unpaid invoices present, we ensure to keep customer relationships intact. This allows the revenue from future business deals to be achieved.