Are you one of the SMEs writing off mountains of debt?
- September 16, 2016
- Posted by: admin
- Category: Company Blog
An unbelievable £5.8billion of debt was written off by small and medium-sized businesses reluctant to use a debt collection service during the last financial year, according to a survey by Direct Line.
19% of the UK businesses questioned by the insurance giants admitted to writing off debts at an estimated average of £31,330, with 9% claiming to have written off over £100,000.
Understandably, nearly a third of the businesses surveyed gave supplier insolvency as the main reason for writing off the unpaid debt. However Direct Line’s Nick Breton reckons the problems are varied.
He said: “It is alarming to see just how much hard work goes unrewarded, especially when considering that many SMEs appear reluctant to chase debts, with reasons ranging from thinking that the client may not be able to afford the cost to damaging their relationship.
“While maintaining a healthy relationship – and thus ensuring future income – is essential for businesses, many small businesses cannot survive without a regular cash inflow. SMEs should ensure that they are fully aware of all legal avenues designed to help them recoup all of their owed monies.”
We echo Nick’s comments here at CBC International. But while using a debt collection service may feel like a last resort, rest assured we are highly reputable, hugely experienced and fully compliant.
Our “no collection, no fee” service means you have nothing to lose and we only ever act with the utmost professionalism, to help maintain your customer relationships while recovering what’s owed.
Get in touch to find out more.