SME’s Expect Revenues to Fall up to 50%
When should you look at sending it out for collection?
From the 11th March 2020, payment delays have been skyrocketing. The rate of increase in unpaid invoices has shot up 23% in UK. There have been ongoing delays in commercial payments across all industries however, with Covid 19 the problem has been exasperated.
It is expected that the UK SME late payment debt will be up again this year. With last year’s late payment debt rising to a staggering £23.4 billion, up £10.4 billion on the £13 billion owed in 2018 – according to BACS.
There are several facilities now available to businesses which provide government guarantees that will be provided under the scheme
Term loans Overdrafts Invoice financing Asset financing
However, these loans may not be enough for some businesses that were already struggling before the crisis. Many economists think that these items will act as an artificial band-aid for some and allow then to limp along for a further few months before they eventually must go into administration or liquidation.
Should I wait until Post Covid-19 before chasing my outstanding invoices?
Acting now will help mitigate the future risk of losing money or improving your cash flow is well advised. It will help prevent further financial disruption to your business. If your business is owed money, then now is the time to act.
Darcey Quigley can assist you by providing credit control or ledger services in times of staff shortages or logistical or technological challenges. We work with your current ledger and call on your behalf. We can set you up with your own dedicated telephone number and answer as you. There are no contracts and setup is free.
We also have our traditional pre-litigation debt recovery service available for the more troublesome or challenging debts you may have outstanding. Darcey Quigley are still working with full capacity. We are here to assist you with debts that have far exceeded your standard payment terms. We are mindful of the current situation however, we appreciate that our customers are also in a similar predicament. Our staff will always recover your debts in a firm but professional manner as a priority.
If you have reviewed your outstanding invoices and aged debts, we would recommend doing so now or just wait and risk being at the back of the payment queue. Call us now on 01698 821468 to discuss your current circumstances and to review what solution is best suited for your business.