10 October, 2008
North West based law firm Forbes Solicitors is warning local businesses not to be afraid of taking action to recover bad debt after shocking figures reveal that only 24% of small and medium-sized enterprises take any legal action to recover bad debt for fear of damaging relationships with clients.
The survey of 300 UK businesses undertaken by Cattles Invoice Finance found that growing businesses have lost £11bn to bad debt in the last year alone.
Alison Nelson who heads up Forbes' Debt Collect team comments, "With the continued credit crunch it is more important than ever that businesses protect themselves against bad debt. Recovering what is owed to you does not always have to sour the relationship with your customer, there are a number of ways we can go about recovering bad debt and legal action will only be taken if it is felt the relationship has irretrievably broken down."
Many businesses do not realise that interest and a late payment charge can be added to overdue debt, which can often easily cover the cost of instructing someone to collect the debt and is also a good deterrent against persistent late payers.
For further advice on any issues relating to collecting debt for your business, please contact Alison Nelson on 01254 222303 or contact Alison Nelson by email.