Why do British companies not collect their overdue invoices?

Without doubt, the quantity of overdue invoices is having a negative effect on UK businesses and the economy as a whole. According to figures released by NatWest, one on five businesses is owed between, £50,000 and £100,000. With these sums impacting heavily on SMEs, the question remains: why do British companies not collect their overdue invoices?

Time…

Perhaps the biggest factor in collecting debts is time. The payment organisation BACS revealed that SMEs are forced to spend around half a day a week pursuing payments. This adds up to around 158million man hours every year spent chasing debtors – hours that could undoubtedly have been put to better use elsewhere. In dedicating time trying to settle accounts, businesses are losing man-hours in a climate where every second costs money. As a result, many decide to just sit it out and hope for the best.

…and Money

Another major factor is money. With overdue invoices hanging over them, many companies feel that they simply do not have the finances to spend on DCAs or pursuing other avenues of recovery. In addition, when the competition in virtually every marketplace is so strong, few companies want to risk their reputations by becoming involved in protracted legal cases.

However, what many business owners don’t realise is that there are free services through which you can find the right DCAs for the job. A company like ComparetheDCA.com can get you free quotes from over 20 DCAs, allowing you to source the agency that is right for your circumstances. In addition, they will have reached agreements with the groups on their panel, giving you access to special rates that you might not find should you contact a DCA directly. While prevention is always better than cure, there are resources available to allow you to recover what you are owed at minimal cost and with minimal impact on the daily running of your business.

www.ComparetheDCA.com