- 19 May 2022
- 2 min read
Supporting businesses in the recovery of unpaid bills
With businesses under pressure from payment delays and rising staff shortages, Elizabeth Ryall explains how they can encourage the repayment of commercial debt.
The current cost of living crisis is challenging the finances of hundreds of thousands of households across Britain, but households are not alone in these economic challenges. Small businesses are suffering from increasing pressure caused by delays in payments and rising staff shortages. Bill waiting times are increasing, leading to a depletion in cash flow as businesses struggle to meet the demands of their own rising costs. With customers making tough decisions on where to spend their money, income is also dwindling.
What can be done to encourage repayment of commercial debt?
Businesses can take action to reduce their bill waiting time and optimise their cash flow through swift recovery action. A robust process to complement credit control procedures will increase bill payments and reprioritise swift repayment for repeat offenders. Tackling late payments is vital now as businesses lack government support to bridge the gap between service/product delivery and bill payment.
Some tips for encouraging repayment of commercial debt are:
- Promptly refer any overdue invoices to a third-party commercial debt solicitor
- Enforce late payment and interest contractual provisions
- Seek statutory compensation under the Late Payment of Commercial Debts (Interest) Act 1998 (up to £100)
In the short term these measures will support the prioritisation of any unpaid invoices and the additional compensation and interest will help cover the cost of instructing a solicitor. In the long term businesses can take confidence from the knowledge that they have support and guidance on hand and that their customers will understand the importance of adhering to payment terms.
Trethowans are here to support local businesses and can offer assistance in recovery of unpaid bills and deal with existing contract disputes which can increase cash flow when it is most needed. We can offer flexible cost options and will seek practical resolutions for any entrenched debt which needs unlocking.
To discuss any debt related issues and to receive a no obligation quote, call Elizabeth Ryall on 023 8082 0524.