Company Blog

Times are getting harder for the hard working sole traders of the UK, with new figures showing that nearly one million self-employed people abandoned over £8billion in payments in 2016.

A recent survey by the UK’s mobile payments service Paym found that 30% of sole traders admitted to giving up on a payment in 2016. That’s a staggering 999,000 businesses losing out on an average of £2,472 each per year.

This is an incredibly high figure for cash flow-reliant businesses reluctant to use debt collection companies, leaving plumbers, decorators, plasterers and many more tradesmen at risk of spiralling into to debt problems themselves.

Alarmingly, the survey discovered that even when customers are willing to pay, nearly a third (32%) of sole traders admit to rounding payments down for those who don’t have the right change on them, to avoid receiving something rather than nothing at all.

There are large regional variances too, with sole traders in the South West the hardest hit – 37% of sole traders there abandon the chase for payments, compared with 21% in the West Midlands.

A growing concern

And the bad news is, the problem appears to be dramatically on the rise, with 23% of sole traders revealing they’d written off a debt in 2015 – a 7% rise in just 12 months.

Craig Tillotson, Executive Chairman of Paym, said: “It is worrying to see that late payments are a growing problem for Britain’s sole traders. Chasing late payments eats up valuable time, so it’s understandable that an increasing amount choose to cut their losses.”

 

What Craig doesn’t point out, though, is that sole traders are just as eligible as Private Limited companies and PLCs to use debt collection companies – so they can save this valuable time by instructing a debt recovery agency sooner, rather than later.

 

Good relationships

 

The problem we’ve found with many sole traders is that they rely on maintaining good relationships with customers, rather than scaring them off by getting heavy handed debt collectors involved.

 

Here at CBC International, we totally understand the negative perception of debt collection services and that’s why we guarantee to act tactfully and with complete professionalism at all times.

 

We will help preserve the relationships you’ve worked hard to forge, and, most importantly, we’ll help you recover a large percentage of the money owed to you

 

So remember, if you’re a sole trader, debt collection companies are on your side. Get in touch to find out how we can recover the money you’re owed.