In part two of our series on Debt Recovery in the USA our American Debt Collection agent outlined the 10 questions any creditor must ask prior to taking a claim to court in the USA. Whilst many of the points raised in this piece are not entirely dissimilar to the questions any creditor should ask before pursuing legal action, one critical point is often overlooked.

If your company is considering taking legal action in the USA to recover unpaid invoices, you will be expected to provide at least one witness at trial. Our US affiliate explains:

Many businesses that work with local authorities are facing a 'postcode lottery' to determine whether their accounts are settled on time, or whether they must deal with late payments from their council customers, says the Forum of Private Business.

The claim is significant because, back in 2008, the government called for councils to pay their suppliers' invoices in no more than ten days - a way to keep small businesses' cashflow healthy, as well as to ensure liquidity within the wider economy as a whole.

Following on from the news that UK PLC's are sitting on a staggering £64 billion excess of capital the latest figures from Bacs Payment Schemes show overdue payments to UK SMEs are now at a record breaking all-time high of £35.3 billion.

The data was compiled at the end of 2011, and showed a £2 billion increase in late payments in the space of just six months.

Simple credit control measures could help one in ten businesses nationwide to stay operational in the face of delayed payments.

According to figures from Yorkshire Bank and its north-of-the-border equivalent, Clydesdale Bank, 10% of companies would not be able to survive if their clients took over 90 days to pay their invoices.

Late payments to creditors by UK PLC’s are being used to add to the working capital companies have at their disposal, according to a new report from Deloitte.

The professional services provider has analysed the working capital performance of 20,800 companies with global operations over the past five years, enabling it to compile a £64 billion estimate of excess working capital in the UK - a rise of £3 billion since 2010.

 

In our first blog post on USA debt collection we discussed the three pre-legal stages an American debt recovery agency will use to attempt recovery. But what happens when they have done their best to collect, but the debtor refuses to co-operate?

In this instance your only option to collect the debt may be to consider taking legal action. As with any legal claim here in the UK you can expect to pay the court costs and lawyers fees. But unlike in the UK you as a creditor will be required to attend any hearing, generally at your own cost.

Business loans have been making the headlines recently, but it's not all bad news - particularly for companies that have improved debt collection over the past year or so.

There's a perception in the media that businesses need loans in order to succeed. And in some cases, yes, that's true - an injection of cash can be useful for all kinds of reasons, from setting up a new firm to undergoing expansion or a change of direction.

 

Here at Safe Collections we have decades of experience in helping our customers recover unpaid invoices and bad debts both in the UK and across the globe.  One of our key markets is the USA and we have been working closely with our US debt recovery affiliate since 1986.

Robert is the Vice President of International & Corporate Quality at our affiliate office in New York and here he explains the Three Phase USA debt collection procedures they follow in recovery of overdue accounts from US based debtors.

A headline-grabbing report from the Forum of Private Business and Graydon reveals that formal credit control processes are in place at fewer than half of the UK's small businesses.

The survey looked at 500 companies across the UK, and just 44% said they had formal credit control procedures to fall back on if they are not paid promptly by debtors.  However, many others admitted to making use of a spur-of-the-moment approach to payments, with 16% juggling payments as they go along and 38% mixing formal credit control processes with informal payment-chasing.

Credit control is an important part of running any business effectively, but for small-business owners it can have an even greater significance.

When you rely on a regular income to cover your outgoings, overheads and employee wages, any delay in payments from clients can have a severe impact on your company cash flow.

Hitting the Headlines: Safe Collections in the Guardian

in About Safe Collections by Adam Home
If you're a Guardian reader, you may have seen Safe Collections' collections and partnerships manager Adam Home quoted in a Guardian Professional article on May 12th. Tim Aldred's piece looked at the case for credit control teams as a way for businesses to…

Hitting The Headlines: The Independent on Sunday

in About Safe Collections by Adam Home
In 2009 our founder and Managing Director was interviewed for a piece in The Independent On Sunday, this article is reproduced below with their kind permission. in 2009 we still went by our original name of Creditsafe Ltd, whilst our name may have changed our…