Late payments and cashflow difficulties
In light of recently published research that late payment is cited by most SMEs in the West Midlands as the major cause of inhibited growth. Kax Chana, a Solicitor at The Wilkes Partnership said “Late payment is a persistent problem for businesses and can result in serious cash flow problems, falling profits and ultimately affect the liquidity of a business”.
According to its latest Business in Britain report, Lloyds Bank said as many as one in five businesses could be restricting their investment plans because of ongoing cashflow problems.
Kax Chana, comments “It is crucial to act quickly if a customer does not pay, the first to chase will usually be the first to get paid! The key to increasing cashflow is being proactive when it comes to credit control. Customers will soon learn how businesses manage their credit control, if you are lenient with how and when you chase outstanding payments, customers will push boundaries further. A firm and structured approach to credit control will say to customers that you are serious about getting paid on time.”
At The Wilkes Partnership, we implement a very effective commercial collections process, which in turn increases cashflow for many businesses. We operate using a clear pricing structure, so clients will always know what costs are involved. No debt is too small or too large and in most cases can be chased for up to 6 years.
If you would like assistance in relation to Commercial Collections, call Kax Chana at The Wilkes Partnership LLP on 0121 233 4333 for further information.