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KBL's Debt Recovery Package

13/08/2009

The first quarter of 2009 has seen a 54% increase in commercial insolvency’s on the same period a year ago. Businesses are struggling to cope in this economic downturn and a major factor is late paying customers.

The average sum owed to businesses by each customer is £2,400; this is largely due to the absence of an effective system of debt collection and credit control. Good credit control is crucial especially for small businesses and can often help to avoid the need to take debt recovery action. However, where a debt arises and remains unpaid, swift and effective measures need to be taken to maximise chances of a recovery.

Successful debt recovery is all about "first come, first served". A delay in instituting legal proceedings can invariably result in failure to recover at all. Businesses worry about the state of a "commercial relationship" with a customer they are thinking of pursuing and are reluctant to pursue that debtor through the Courts for fear that this will affect the existing business relationship.

It is undoubtedly important to maintain commercial relationships, however in the current climate the stakes are greater for all concerned and the importance of such relationships must be weighed against the affect of not receiving payment at all.

To address concerns and ensure a good supplier/customer balance KBL have launched a debt recovery package. For details of what this entails please speak to Paul Hatton, head of Debt Recovery on 01204 527777 or see our Debt Recovery pages.