Collecting past due receivables owed to you by your business clients can be one of the most difficult aspects of running a business. As professional debt collection agency, Cobra Financial Solutions are on hand to help recover B2B debts and operate across the whole of the United Kingdom. As a rule of thumb, if you are too patient, you may never receive payment while on the flipside, if you’re too impatient, you could irritate a good client who just needs a little more time to pay. And, if you are too aggressive, you could get sued.
Here we will discuss the top six mistakes businesses make when trying to collect past due receivables owed to them by their business clients, and the best course of action you should take to get paid.
1. Not understanding why it’s important to hire a Commercial Debt Collection Agency
The biggest mistake many businesses across the UK make is that they wait much too long before deciding to hire a commercial debt collection agency. The longer you postpone hiring a reputable debt collection agency, the less likely you are to get paid. And if you are wondering when it’s the right time to hire a professional debt collector, the best answer is sooner rather than later. Not to cause mass panic but the chances of collecting a past due debt reduces drastically as time goes by so cease the day and get in touch with Cobra Financial Solutions and let us help you with your debt problems.
2. Waiting too long to hire a Commercial Debt Collection Agency
When it comes to collecting debts, most businesses are too patient and wait too long before contacting a commercial debt collection agency such as Cobra Financial Solutions. The main reason behind this trend is the fact that they fail to set payment deadlines on their account receivables. When it comes to debt collection, it is advisable to be clear in what deadlines you expect to be adhered to.
So as soon as your accounts have fallen 90 days overdue, you should not wait any longer. Get in touch with our team of professional debt collection agents here at Cobra Financial Solutions to begin the collection process. Waiting too long to hire a debt collection agency to collect your past due receivables is one of the most costly blunders businesses make when trying to collect past due debts.
3. Not following up diligently
Looking at your debt recovery plan a clear follow-up strategy will help you get paid faster and avoid bad debts in the future. Prompt collection of past due accounts will also help you maintain a healthy cash flow which is a win win situation for any business. A good follow up system includes contacting debtors on time, setting credit limits, making credit checks and enforcing a good credit policy. When persistence is demonstrated, late payers will soon understand that they can’t just ignore paying your invoices.
In addition, a good follow-up system will help you decide how long you can continue contacting them before hiring a commercial debt collection agency. Operating across the whole of the UK, Cobra Financial Solutions have a wealth experience in collecting B2B debts on behalf of commercial clients. Get in touch today to discuss your individual requirements with one of our debt collection agents who will be happy to help.
4. Thinking you can do what a Commercial Debt Collection Agency can do
Commercial debt collection agencies such as the team here at Cobra Financial Solutions do a lot more than just making phone calls and sending collection letters. A great deal of our collection effort involves research, including finding the debtors and their assets and working out a collection strategy to ensure positive debt collection.
Cobra Financial Solutions also help to provide valuable information on in-house credit and collection guidelines. Keep in mind that our primary focus and area of expertise is in collecting debts, whereas your area of expertise is running your business. With this in mind, the best piece of advice is to focus on what you know best- running your business in the most effective way and allow our debt collection agents to recover your outstanding monies on your behalf.
5. Using only one means of communication
Failure to communicate with debtors on a timely and consistent basis will leave you with huge sums of unpaid debts. It is important to always remember that communication is key to the debtor-creditor relationship. As old fashioned as it sounds, a telephone call is certainly one of the best communication channels, and it becomes even harder to ignore someone when they are directly speaking to you. Text messages can also be used, but this will depend on the relationship you have with your client.
To save all manner of stress and hassle, why not let the professionals deal with your outstanding B2B debts? Cobra Financial Solutions are here to help so take advantage of our wealth of experience in the debt collection agency and focus on what really matters- running your business on a daily basis. Get in touch today and speak with one of our experienced debt collection agents and see how we can help you.