According to Registry Trust, during the first quarter of 2021, the number of County Court Judgments (CJJs) that were issued against businesses in Wales and England rose sharply.
A CCJ is a judgment that the court issues according to which a customer has to settle a debt, and all the relevant costs such as interest within a given time frame.
Once a CJJ is issued, if the payment is not made within a month, then the CCJ will be on the customer’s credit record for six years, thus making it difficult for them to obtain credit in the future. Since late payments are a significant pressure on any business’s cash flow, it’s not a surprise that more and more companies are going to court to attempt to get their money back.
In the first quarter of 2018, over 32,000 CCJs were registered against businesses in Wales and England, a 7% increase since the previous year. Analysts say that for the first time in four years, the number of CCJs issued has risen year on year.
What does this mean?
It is not easy to identify the reason for the sharp rise in CCJs. However, given that UK businesses are currently facing many obstacles; it is not a surprise that they’re taking steps to deal with late payments to protect their cash flow.
There are plenty of other threats to cash flow (other than late payments), especially with the economic uncertainty surrounding Brexit, skills shortage, and rising business costs.
With cash flow being amongst the leading causes of business failure, businesses must fight for the payments owed to them.
What is the alternative option?
Even though CCJs are an effective way to fight against late payment, one must consider the time and cost involved. It can be pretty challenging, and success is not certain. Instead, businesses can outsource the debts to a commercial debt collection agency such as Cobra Financial Solutions, that excels at recovering overdue invoices.
Just the way taking legal action tells clients that you mean business, the added pressure of a third-party Debt Recovery Agency might push the customer to settle outstanding invoices.
Therefore, choosing a company like Cobra Financial Solutions, who have an industry-high success rate of 89%, to get your money back is a no-brainer.
Call us now on 0151 526 4222.