02 April, 2009
Lancashire law firm Forbes Solicitors has seen the number of local businesses instructing them to recover bad debts double in the past 12 months. The firm puts the increase down to astute businesses keeping a tighter control of their finances.
With a large number of businesses already experiencing a drop in profits, further losses due to bad debts are hitting them harder than ever.
Alison Nelson the head of Business Debt Collection at Forbes Solicitors, "Local businesses are realising the increasing importance of recovering money which is rightly theirs in order to survive financially. We are finding that those who are being most pro-active are coping best during these tough times."
"Many have been frightened in the past of upsetting customers but are realising in times like this it is vital to keep on top of your finances in order to survive."
There are measures that can be taken to minimise debt problems such as ensuring the correct credit control procedures are in place and taking action as soon as any payment terms are exceeded. However, should problems still be encountered, a simple letter from a Solicitor can often prompt payment and does not always have to sour the business relationship.