A Fylde coast debt recovery expert is offering her top tips for businesses struggling to recover outstanding debts.
The advice follows the news that the process for debtors to declare bankruptcy has been made easier, with the previous requirement to apply to court having been abolished.
Research suggests small businesses in the UK wait an average of 72 days for invoices to be paid.
Suzanne Dean, debt recovery manager at Napthens solicitors, says many people turn to a debt collection agent to resolve unpaid invoices, but advises there are is an alternative option which provides wider benefits.
Suzanne said: “Debt recovery remains a challenge for many businesses, in particular smaller businesses.
“In our experience, businesses think using a solicitor is expensive, but it’s not the case.
“There are many benefits to using a solicitor to resolve debt issues. A solicitor has the ability to begin court proceedings against a debtor if required, and a formal notice of this can be quite effective in obtaining outstanding money.
“Clients also have the benefit of specialist knowledge and experience of a solicitor, which makes the whole process much smoother and more efficient.
“It’s imperative that businesses review their debt recovery processes regularly to prevent the serious impact of late payment, which can have a negative effect on cash flow and the business as a whole.”