Unpaid invoices are one of the biggest annoyances for all businesses.
They impact cashflow, and waste hours of administrative time that would be better spent on other matters.A 2016 report produced by the Federation of Small Business found that a third of all payments to small business are late. Those late payments average over £6,000 and have caused 37% of surveyed businesses to experience difficulties with cashflow. 30% of the surveyed businesses were forced to use overdrafts to keep their own business running as a result of debts owed to them.
Financial technology company Ormsby Street, recently carried out a survey on 30,000 of their customers. On average, invoices sent by businesses with a turnover of less than £5m a year took 72 days to be paid. However, they found that in cases where a simple “letter before action” was sent by solicitors, two thirds of outstanding payments were received in less than a week.
BRM have for many years provided a fixed-fee debt collection service, and it is also our experience that one letter from us is enough to prompt payments from even historically persistent debtors. In many cases, the cost to our client for recovering the debt after instructing us is just £5 + VAT – our standard charge for sending a “letter before action”.
More information about our fixed-fee debt recovery service can be found at the link below: