Even people who aren’t familiar with business world were able to watch industry giant Carillion collapse almost in real time at the start of the year. Did anyone see it coming? 20,000 employees, contracts for the NHS and prison service, and the armed services surely meant Carillion was one of the most secure government contractors in the world.
When they went under, they took jobs, contracts and revenue with them. Thousands were left out of pocket, and will never see their money.
Indeed, Retail Gazette published a prophetic article at the start of 2018 which gave its readers a stark warning to be on high alert as the number of company liquidations increased again.
This backed up government figures government figures which warned that company insolvencies increased by 13% when comparing figures from Q4 of 2017 to Q1 of 2018. This is the highest level we’ve seen since the start of 2014.
The most affected industry? The construction industry, where Carillion had a lot of its contracts. The retail trade took an unenviable second place.
Why should I be worried?
In this very insecure environment, we wouldn’t blame you for feeling uncomfortable the minute a payment becomes overdue. Is an insolvency coming? Is it worth adding a late invoice payment?
Late payers can rapidly become a big problem, particularly for smaller creditors who may not have the resources to manage it, and that’s where Nightfox can step in.
Old fashioned, no nonsense approach
Because Nightfox are experts in asset recovery, and insist on face to face contact, we physically see what’s on their premises, and whether any of these assets could be used to help reclaim your losses. We insist on meeting your debtors in person, which allows us to make an on-site assessment of their situation, and look out for any warning signs, such as asset disposal taking place, and dwindling staff numbers.
It pays to start quickly
We’d always advise creditor intervention at the earliest stage, reminding your debtor that you’re serious about getting what’s owed. Our experience is that the longer you leave it, the lower priority you’re given when it comes to prioritising debts, with the debtor deciding that if you were really bothered, you’d be chasing them more often.
By approaching the debtor about their obligations early on, in a professional and courteous manner, it’s a lot easier to engage with them. The older a debt gets, the harder it is to collect, and the more likely it is that your debtor is heading for insolvency.
If there’s been no response to your own delinquent payment reminders, it’s time to involve a third party such as Nightfox, who can take a more proactive and direct approach to debt collection, with face to face contact, and accelerate the timeline for you, before that debtor hits the point of insolvency, leaving you to deal with time consuming, costly legal routes and no guarantee of seeing your money.
Overseas or AWOL debtor?
Of course, all this is fine if your debtor is still available. For many debtors, the first thing they do when their business gets into trouble is to try to disappear, leaving their debts behind.
They change their business name, location, or their bank account. Fortunately, Nightfox have access to high tech tracing solutions which will help us to locate them, prove their identity, and take action against them before they can declare insolvency. Our debt collectors can even trace overseas debtors.
Just because the insolvency process is on the cards for a company, it doesn’t mean that you’re about to lose out. Using the comprehensive services of Nightfox, you can avoid the implications of other companies’ liquidations. Take action now, and avoid your losses increasing.