Debt Recovery Problems
It’s true – the biggest problem with debt recovery is the time that it takes. Chasing debt is not something that any business should have to do but unfortunately, it’s very common. Many businesses have a policy of taking a fair amount of time before paying up in full as it has a positive effect on their cash flow.
Once goods or services are invoiced they become a debt to your business. This is known as a B2B debt, or business to business debt. Your customer (the “debtor”) will exercise their right to the terms that they have been afforded by you.
Once these terms have been exceeded the reduction in cash-flow and collection cost can sometimes be immense and have a dramatic impact on the day to day running of your business.
Credit control requires good discipline and swift action. It’s not something that you ever get any thanks for; in fact, in many instances, it’s just the opposite. The more you chase people, the more upset your customers can become, even although it is you or your credit controller who is in the right. On the flipside, if you don’t chase bad paying companies, you may never get paid. In the meantime, the extended credit that you are forced to take comes at a price to your own business yet again.
Difficult and expensive
Getting someone who is good at good at debt recovery is not only difficult, it can be quite expensive too; especially if you have to employ a dedicated member of staff. There is a way, however, of fixing this problem. This is through an outsourced credit management specialist or debt collections agency such as Cobra Financial Solutions.
As we know firsthand, what is needed with persistent offenders is a polite but forceful approach. This kind of approach- professional, persistent and persuasive- makes the guilty party realise that they are dealing with an experienced debt collection professional. They’ll soon realise that such professional agents won’t listen to any further excuses and will recover what is rightfully yours.
Professional help is at hand
If you need professional help with debt collection; whether that help is with doorstep collections or invoice settlement expedition, get in touch with our experienced and knowledgeable debt collection agents here at Cobra Financial Solutions.