When we go into business, we think about plans, growth, staff, revenue, and profits. The truth is we should also be thinking about effective outsourced debt collection.
As they start out, so many Cardiff businesses forget about the fact that late payment is one of the biggest threats to their future survival.
Here’s why outsourced debt collection should be part of your business plan from day one…
- It protects your cashflow – A poor cash flow is one of the fastest ways to kill your business. If your customers don’t pay on time or don’t pay at all, that’s going to hit your ability to pay your own bills and suppliers. It’s a terrible chain to become involved in.
Instead, effective debt collection ensures your invoices are paid on time. If a debt collection agency approaches a client over one bill, they are more likely to pay their next invoice on time because, sadly, many businesses operate on a whoever shouts the loudest gets paid the first basis.
You have a duty to yourself, your business, and your staff to ensure a good cash flow.
- It can strengthen relationships with your clients – Experienced outsourced agents know how to have difficult conversations with your clients without upsetting them or causing them to move their business elsewhere.
They understand the pressure all businesses are under, so they can sympathise with clients.
However, they keep focused on the goal of getting your invoices paid.
Having that third party acting for you can take any heat out of the situation, too, as clients are less likely to take things personally from someone acting for you.
- It allows your business to grow – Knowing your invoices will be paid promptly allows your Cardiff business to plan for expansion. That could mean buying more stock, taking on more staff, getting bigger premises, or introducing new product lines.
Without that debt collection, growth is stunted.
- It can save you staff time and money – If your own staff is dealing with your credit management and debt collection, that means they aren’t focusing on generating more revenue for you, dealing with clients, or producing more stock.
Their time is money. Outsourcing to a debt management agency will free up their time. It could also help your business avoid costly legal fees by getting clients to pay or agree to a payment schedule before court action is necessary.
- It brings your Cardiff business debt management expertise and legal knowledge – Understanding the law surrounding late payment, invoicing, and debt management is important for any business, but few have the specialised skills you find in a debt collection company.
When we start out, we feel we have to learn everything ourselves.
However, most business people soon learn that is the quickest way to burn out. Instead, we need to build a team around us, giving us the specialist knowledge we need to move forward.
This could be in accountancy, bookkeeping, marketing, or in credit control and debt management.
How could Inter Alia’s services help you?
Our debt collection team will advise you of your rights and discuss how to get your debt paid.
We could go to the debtor’s premises to discuss the matter with them, trace debtors who have absconded, reconnect with them, serve legal documents, or enforce court orders.
We also have in-house lawyers we consult to provide clients with expert legal advice.
Does your Cardiff business need help with debt collection? Call our friendly, expert team on 01495 781218 or arrange a call back here.