If there’s one thing that all business owners can agree on, it’s that unpaid invoices are a big problem. It’s a problem that’s hard to avoid, regardless of your industry or business type. But, that doesn’t mean you need to be left feeling uncertain or stressed about your cash flow.
Debt collectors can step in to help recover unpaid invoices efficiently and professionally.
How to Recover Unpaid Invoices
Late or unpaid invoices can disrupt cash flow, impact your business profits and cause a lot of stress. The sooner you recover unpaid business debts, the better.
- Send a Letter Before Action – This is often the first step in the debt collection process and it involves sending a letter to the debtor demanding payment. It gives them a time frame for making the payment, shows that you are serious about recovering the unpaid funds and is often enough to encourage the debtor to act.
- Issue a Statutory Demand – If sending a letter before action doesn’t work, debt collectors might move on to sending a statutory demand. This is another warning, stating that if the debt is not paid, court proceedings will begin. A statutory demand gives a debtor 21 days to pay the debt or agree to a payment plan.
- Starting Court Proceedings – If these efforts go unnoticed, it might be time to move onto court proceedings. This is done by making a county court claim and making a request for the unpaid invoice, court fees, interest and additional costs.
- Turn to Enforcement Efforts – Eventually, it could be time to turn to enforcement efforts. Methods include taking control of goods, issuing an attachment of earnings order, issuing a third party debt order or getting a charging order.
These efforts can be time consuming and stressful, especially if you are dealing with a debtor who’s refusing to pay, which is why a lot of people turn to debt collectors.
The Benefits of Getting Help from Debt Collectors
If you need help recovering unpaid invoices, debt collectors are the people to call. Debt collectors, found by contacting a professional debt collection agency, can help you to recover unpaid invoices in a variety of ways.
- Debt Collection Experts – Debt collectors are industry experts, with a wealth of experience and knowledge of collecting unpaid invoices. They understand the best approaches to collecting debts and how to ensure a response from stubborn debtors. With tried and tested techniques in place, debt collectors are capable of achieving results quickly.
- Maintain Client Relationships – With debt collectors acting as a middleman, you can maintain client relationships when you’re recovering unpaid invoices. Chasing clients for payments can put a strain on professional relationships, but working with debt collectors allows your business to remain somewhat neutral
- Save Time and Resources – Recovering unpaid invoices is time consuming, and that time could be better spent growing your business. With the help of debt collectors, you free up your time and resources, allowing you to focus on other aspects of running a business.
Get in touch with Cobra Financial to find out more about how debt collectors can help you to recover unpaid invoices.
