Debt collection run well, saves money by reducing the need to borrow, reduces the chance or certainty in this economy of being hit by bad debt, shines as an example of efficiency to the rest of the business and your bankers as a well run business.
A £60k bad debt on a 30% margin means the necessity of an immediate new order for £200k.
The result, apart from the obvious financial impact.
Loss of confidence and morale, spreads like the plague, which can have a significant impact on sales and all departments.
The business’s suppliers will be looking closely at fulfilling new orders.
The perception in the market place as a “loser” instead of a “winner”, who wants to work with a loser?
Loss of confidence by the Bank and or Finance Company lending money on debtors.
At it’s worst a business that was performing mid table, can quickly travel the path into insolvency due to the effect of apprehension in the market place, this path is entirely avoidable.
A well run debt collection department should ensure you are the first to be paid not the last.
Our message is spend some quality time reviewing and making sure the individual or the department is up to date using the very latest techniques of debt collection, and you know at all time what your average days debtor collection is.
We can do a “Health Check” or provide training at a fraction of the cost of a bad debt, act now and rest easy.