The amount of debt racked up by UK business has reached a shocking £390.7bn, according to a report by Link Asset Services (Click Here For More Information)
This sobering news seems to be the product of a combination of very low interest rates and pressures to keep shareholders happy, thereby encouraging businesses to increase their borrowing. This has affected some sectors more than others. Oil companies, for examples, have increased their borrowing by an average 459 percent since 2008-9, with companies such as BP and Shell forced to restructure following the collapse of oil prices in 2015. In this way, they have taken on even more debt.The onus on businesses now, as global stock markets fall and fears of a trade war rise, is to keep an eye on their debt as much as possible. Indeed, the volatile economic environment means that more companies have the potential to go bust, thereby costing creditors and putting their finances at risk through bad debts.
One such way to keep track of business debts and remain solvent is to use a debt collection company. Here are just a few reasons why:
They have experience in collecting unpaid debts
Hiring a debt recovery service increases the odds of collecting unpaid debts due to the simple fact that they have experience in this deceptively tricky task. If you’re a business owner, your primary focus should be ensuring that your business is running smoothly, and the time it takes to chase up debts can be very time-consuming.
What’s more, professionals are well-versed in the best ways to get debtors to pay and can give off a greater air of authority than amateurs. There is a lot to be said for getting a third party involved, as it can show that you are very serious about obtaining the money you are owed.
The professionals know how to navigate the legal landscape
The debt collection industry is governed by a whole host of laws designed to protect customers, and they will readily invoke these if they believe their rights have been violated. Debt collection agencies are well-versed in the minutiae of debt collection laws and can, therefore, act as a kind of legal barrier. The last thing you want as a business owner is to be dragged into any nasty legal disputes.
Debt collectors may be aware of lax payers
Businesses and individuals who fail to pay back debt often have one thing in common: they’re repeat offenders. Indeed, debt collectors may have come across the businesses indebted to you before, so will know the best ways of getting them to pay up.
Outsourcing the task means staff can maintain good relationships with clients and partners
If you or your staff are chasing up debt, it is likely that those on the receiving end of your requests will take your names to heart. Hiring a debt collection company means that everything can be dealt with via third parties, allowing you to keep business relationships civil and neutral.
Are you interested in hiring an experienced debt collection company with a great track record?