Debt Recovery for General Merchandise WholesalersLast modified: February 11, 2022
Debt Recovery for General Merchandise Wholesalers
The wholesale industry in the UK is split up into various sub-sectors, with general merchandise being one of the largest. This sector is bursting with firms of all sizes, including small businesses and even self-employed individuals.
Do you own a small General Merchandise Wholesale business that has not been paid by a customer? If this is the case, continue reading for an expert’s view on tips to prevent this.
General merchandise wholesalers work in an industry where getting paid is essential to the daily running of the business. Without this, they won’t have the funds to pay for the products they intend to sell to make more money.
More recently, panic buying during the Covid-19 pandemic presented many financial challenges for wholesalers across the UK.
The lack of products available saw that retailers needed to buy these on a quick turnaround and in big quantities. The fast-paced nature of this meant that payment was sometimes delayed to prioritise the delivery of the products.
General Merchandise Wholesalers build relationships with distributors in all industries, which has been a catalyst for the increase in financial problems.
This proficient guide will help general merchandise wholesalers prevent unpaid fees from becoming commonplace.
Preventing Debt Recovery for General Merchandise Wholesalers
Preventing the need for debt recovery is the best situation for any company director, as it negates any cash flow issues.
It is better to have these precautions in place as customer payment habits can change without warning.
Request that payment is made upfront
As part of any business transaction, regardless of industry, it is better to receive full payment upfront. We highly recommend doing this, as this will avoid the issue of customers not paying.
You can simplify your payment processes to accommodate this, such as using PayPal or Worldpay.
This is easier said than done, however, as customers commonly want to pay for wholesale goods on an invoice basis.
The customer may also need help with managing their finances, which may prevent them from paying upfront.
Get the customer to sign payment terms before supplying the goods
If payment cannot be secured beforehand, it is best to make your customer aware of the terms of how to pay.
Preparing a payment terms document will outline how much is owed, when this should be paid and any terms and conditions.
Getting the customer to sign this will create a legally binding document of their intentions to pay on time.
The use of payment terms will stop any excuses from the customer related to not knowing when payment is due.
Implement late payment charges to your invoices
You should add a “late payment charges” clause to the payment terms that your customers agree to.
This will detail the intention to add interest on top of the invoice amount if the payment becomes late.
Many businesses use this as a standard procedure in their credit control efforts. For example, it is common for interest to be added to late payments on finance, credit cards, phone bills etc.
If a customer knows they will be charged more if they miss a payment, they are likely to pay on time.
Speak to Frontline Collections
If the above prevention measures have failed to produce success, you need to speak to a professional.
In order to recover the money that you are owed, using an agency that specialises in collecting unpaid debts is recommended.
Frontline Collections have many years of experience performing debt recovery for general merchandise wholesalers.
Our market-leading knowledge and expertise allow us to recover your debts in a proactive manner. This debt collection approach is the best solution for anyone with unpaid wholesale fees.
If General Merchandise Wholesaler fees are left unpaid, don’t hesitate to contact our debt collection professionals.
Debt Recovery for General Merchandise Wholesalers – FAQ
What procedures do I have to take if I have not been paid?
Many options exist for the recovery of wholesale fees, however, we recommend using a debt collection agency. This is the best method to choose rather than using a firm of solicitors or a small claims court.
Why should I use a debt collection agency to recover this?
Debt collection agencies, such as Frontline Collections, provide the highest success rates whilst minimising service costs. Cost-effectiveness is a beneficial trait for any small business that has previously had fees withheld.
Can money be recovered from an individual as well as a business?
Yes, debt collection services can be conducted regardless of who owes the money. Frontline Collections specialise in private debt collection, whereas other agencies focus on B2B debts.
How successful is debt recovery for general merchandise wholesalers?
We lead the way for wholesalers debt collection in the UK, providing an average success rate of 90% and above.
What should I do if the debtor has disappeared or is ignoring me?
If you have a customer that has absconded, our specialists can carry out a tracing service to track down their whereabouts. Following this, we will enforce the recovery of the debt on your behalf.