Research has found that one in three (32 per cent) businesses are reluctant to chase bad debt.

A survey of 397 small and medium-sized enterprises (SMEs) also found that of those affected by bad debt, 81 per cent were reluctant to chase debtors because they found the process uncomfortable while 19 per cent were afraid of antagonising customers. Only 15 per cent of SMEs surveyed used late payment regulations to charge customers extra for late payment.

The poor economic times have had a dramatic impact on how and when bills are paid for. This is compounded by the lack of financial support from the banking industry. Customers & debtors are deciding daily how and who they will pay first.

Outsourcing this process to a specialist experienced partner helps increase cash flow and leaves you to manage the core focus of your business.

A quarter of SMEs surveyed thought the late payments position had deteriorated over the last two years, compared with 17 per cent that thought it had improved.

Despite their unwillingness to pursue late payers, most small businesses recognised that taking action would deliver results. 30% of businesses believed they could recover more debt if they were more proactive.

Yet 77% had no person or a procedure in place for chasing bad debt and a significant majority had no established escalation process for late payments. The research was produced by automated credit control service, Satago.

Collections outsourcing with Lawton Hathaway can increase cash flow, boost efficiency and lower costs. Contact us for FREE advice today. www.lawtonhathaway.com