July 25, 2024

Small Business Debt Collection Experts reveal most commonly used late payment excuses

Top Debt Collection Agency reveals late payment excuses given to small businesses

Small Businesses are being hit by a massive rise in late payment in the UK. Research conducted by the Federation of Small Businesses showed that a third of all Small Business payments are late. Even more concerning was the average value of overdue invoices is £6,142

Findings by Insolvency giants Begbies Traynor claims that 37% of Businesses are now in critical distress causing more concern.

The FSB stated that if Small Businesses were paid on time, it could boost the UK’s economy by a whopping £2.5 billion pounds.

As part of their quest to help combat the problem, a top Debt Collection Agency has revealed the most common used excuses given for late payment to their clients.

Federal Management are the famous name in the UK’s debt collection industry. For nearly 20 years they have been supporting the UK’s small businesses with their award-winning Small Business debt collection services.

Understandably, their expertise of dealing with small business late payment is second to no one else. Gone are the days where the most common excuse is “the cheque is in the post” as most commercial transactions are done immediately.

Most excuses will not surprise many however it is a real problem. With a tightening of the economy and inflation at record levels, it is more important than ever that Small Businesses get paid for good or services they have provided.

Any Small Business owners should be well aware of the excuses that can be made to stall paying their invoices. Small Business Debt Collection Specialists Federal Management have compiled this list of the top 5 excuses for Small Business late payment in 2022.

Top 5 late payment excuses

  1. “We have not received the invoice” – This excuse ranks amongst the most common of all. Customers claiming not to have received the bill or invoice. It is very commonly used in all quarters where monies are owed.
  2. “We’re waiting to get paid from our customer” – “This is irrelevant and has nothing to do with the sum outstanding to the creditor business” says Chris Spencer, Operations Manager for Federal Management. “Simply because they have issues with their customer, it does not enable them to pass that liability off on to their suppliers”
  3. “The person who pays the bills is off” – Again, quite a common late payment excuse.  Most Businesses have ways and means of paying for anything when required to do so. Otherwise, how could they function? Usually, a company debit or credit card is readily available.
  4. “Our payment run isn’t till the end of the month” – Irrespective of when a customers scheduled ‘payment run’ is, if the invoice terms have not been met then payment is due immediately. Again, it is a simple transaction that should be done on time. A business knows its cash flow so therefore the payment should have been made on the previous payment run.
  5. “We’re going bust” – When this is claimed by a customer, you need to act swiftly. Credit checking them should confirm whether or not this is true. Alternatively, ask for the Insolvency Company’s details that are dealing with the purported insolvency.

 

Small Business Debt Collection Agency solutions

If a Small Business is having problems getting invoices paid then there are solutions. Working with a Professional Business Debt Collection specialist like Federal Management can be of massive value.

They provide a full 360 degree service for a small cost. This gets you’re their full expertise, representation and covers all costs of pre-legal debt collection. They can even send Agents to properties to engage with debtors. A professional service, Federal Management’s reputation speaks volumes as they have hundreds of reviews online.

They cater for Small Businesses as well as large PLC’s. For Personal Debt Collection, Frontline Collections are the most notable name. They cater for most types of public serving businesses such as Dental practices, Veterinary surgeries and Private Schools.

Similar to Federal Management, Frontline Collections provide a low fixed cost service and boast an equally impressive reputation and are even the Gold Approved Debt Collection suppliers for the Independent Schools Association.

Both Companies provide the best Debt Collection agency solutions and serve thousands of Businesses every year, collecting millions of pounds in the process.