debt recovery

Regardless of how big your business is, cashflow is vital to its success. But as important as that is, debt recovery isn’t always easy to achieve.

It is not uncommon for a business to have difficulties with debt recovery and collection at one point or another. And, now more than ever, businesses are being faced with late payments because of cash flow problems in supply chains caused by the Coronavirus disruption.

Key issues with business debt recovery

On 27 July 2020 the Chair of the Business, Energy and Industrial Strategy (BEIS) Committee wrote to the Secretary of State to outline a number of key issues for the Government to address in its approach to the support for business and workers as the country emerges from the Coronavirus lockdown.

One of the key issues is the impact of late payments and the problems that many small businesses are continuing to experience throughout the UK’s supply chains because of such cash flow problems.

Coronavirus related debt recovery

Following evidence from SMEs, the Small Business Commissioner (SBC) and the Federation of Small Businesses (FSB), the BEIS Committee has recommended:

  1. That the SBC be given additional powers to proactively investigate late payments;
  2. That the Prompt Payment Code be made compulsory; and
  3. That late payers should be excluded from Government contracts.

The letter calls for a response from the Government by the 1 September 2020, so it is yet to be seen what support will be offered to businesses in light of the issue surrounding late payments.

How we can help

At Stephens Scown, we have a specialist team of debt recovery experts operating our debt recovery service, Debtlink.

Our team has over 40 years collective experience in collecting debts and commercial litigation, and our Debtlink service can help eliminate the time, stress and inconvenience of debt recovery for your business. With prices starting from just £70 plus VAT, it can help free up internal resources, allowing you time to focus on other important aspects of your business. Find out more about how much Debtlink costs here.

We work with businesses of all sizes – some use us only two or three times a year – others we help effectively recover debts of all sizes on a monthly basis. Let us take care of your debt and allow you to focus on the future success of your business.