Expert Small Business Debt Collection Tips

debt collection

There comes a time when most small businesses face not getting paid. The current pandemic has seen a massive rise in unpaid invoices. Small Business Debt Collection has a critical role to play in combating this.

Debt Collection Agency for Small Businesses

Small Business Debt Collection is on the increase across the UK. There has always been a problem with late payments and covid has inflated that. Given the rate of Business failure, it is easy to understand why many small businesses are turning to UK debt collectors.

Society has moved towards a scenario where the person owing the money is the victim. Is this wrong? Maybe not have been in the case of the Payday Loans fiasco but certainly is where Small Businesses are concerned.

Not only is the task itself stressful, it is counterproductive. There is also the issue of legal compliance. When does your efforts to collect what is owed become harassment?

The best way to stop the problem is to prevent it happening in the first place. Prevention is better than a cure, sure. But going forward, there are simple practices to prevent unpaid debts occurring. It should be very clear when and how they wish to be paid for the goods or services provided.


Expert Debt Collection advice can be critical for Small Businesses in the UK. In the past year alone, thousands of SME’s have gone bust in the UK due to non-payment.

All Small Business owners should have a plan for when their invoices are not paid. Efficient accounting can minimise the threat to any SME.

Hypothetically speaking, basic good practices will benefit small businesses cash flow. This is also applicable for personal debt collection also.


Small Debt Collection tips


SME Business experts have recommend using some of the following to optimise cash flow. Follow these handy tips to ensure there are no slip ups.


  1. Confirm all orders in writing – Upon receipt of an order, Small business confirm this in writing. ‘Writing’ includes emails. Confirmation of the order placed should contain the agreed cost and reference numbers.


  1. Clear invoicing – Details any goods or services that are supplied. These need to have the correct date on along with any particulars. Clearly stipulate expected payment dates and terms etc


  1. Monthly Statements -These can be an important tool for regular or repeat customers. They will keep clients informed of payment due dates.


  1. Reminders and warnings – A small business owner should not be afraid to ask to be paid. If accounting software is being used, reminders can be automated. If reminders are ignored then a warning of ‘further action’ needs to be given.


Last Resort


In a Commercial Utopia, all small business customers would pay on time. However, we all know that is not the reality of modern commerce. Some customers will deliberately try to avoid paying. There are instances though where there can be a genuine reason for non-payment.

Unfortunately, one of the many challenges facing small business owners in North East is non-payment. When reasonable dialogue and your best endeavours fail, action needs to be taken.

Professional Debt Collectors

It is important to realise though that not all Debt Collection services are the same. As with any sector, there are some good, some bad and some ugly.

Frontline Collections are regarded by many as the most efficient way of recovering small business debts. A Professional debt collection agency that has been helping SME’s for over 15 years.

For B2B Debt Recovery, Federal Management are highly regarded as the top solution. This is largely due to their high level of industry awards and prestigious clientele. Again,

Most Agencies operate a commission payment basis along with a small instruction fee. They have to act lawfully and follow a strict code of professional conduct.

The old saying is that a Quality Service will deliver Quality results.



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