The Late Payment Assassin's Blog

Accelerating your cash flow

Do you want to increase the performance of your Debt Collection Agency?

Wednesday, 18 November 2015 20:59 by The Late Payment Assassin

It is of course vital to make sure your Debt Collection Agency (DCA) performs at the highest possible level. Measuring this regularly and bench-marking it against industry standards is vital. Also think about the more intangible aspects of your DCA's performance; professionalism, responsiveness, reporting capabilities, speed of paying out collected monies etc.


You as the client have a responsibility to fulfill in this respect as well. If you realise that the better the quality of the debt and associated information you provide to your DCA, the better their performance is going to be, you'll realise that it is a true partnership between you and the DCA that will ensure maximum return on the debts you outsource to them.

For example the sooner you hand debts over to the DCA the bigger the chances are that they will be able to successfully collect. The more time you give your debtor to pay yourself, the more chance there will be that their financial position deteriorates further. The same goes for providing your DCA with as much information as possible. Previous correspondence, responses, contact names and details, it is all vital to allow the DCA to gain results as quickly as possible and importantly get to the front of the queue of people contacting the debtor for payments. Trust me, you are not the only one.

Oh, and I nearly forgot: as most DCAs calculate their fees based on the age of the debt when it is handed over to them, you can save yourself some money there as well.

Don’t be a statistic: Make sure you’re not one of the 34% of UK SMEs who write off £1000s of bad debt every year.

Wednesday, 1 July 2015 09:34 by The Late Payment Assassin

From speaking to our customers, we weren’t surprised when we read the research from Satago that said that 1/3 of UK SMEs write off thousands of pounds of bad debt every year. After all, we know first hand the problems that our customers have when they first seek help and advice from Octempo. Here are some simple ways for business to avoid the pitfalls of inadequate credit control.


(1) Vet your potential customers:

Ormsby Street revealed last month (May 2015) that UK small businesses who regularly credit check their customers are around 30% less likely to go out of business in their first 12 months than businesses which don’t credit check. Using a credit checking service allows you to see whether your customer is likely to be a good payer or not, thus avoiding the issue of late invoice payments later down the line. For more information on one off credit checks, without subscription, available for your customers UK and abroad, request a call back.


(2) Prevention is better than cure:

Keeping on top of your credit control is vital for the cash flow of your business, yet many businesses take their eye off the ball at this crucial part of the sale. Often in SMEs, the burden of credit control falls to the already over-burdened owner or director. If this sounds familiar to you, then you may want to add someone to the headcount, or outsource this to a specialist who will take control of your credit control and forge strong relationships with your customers on your behalf, under your brand name.


(3) Don’t be afraid to take recovery action:

Sometimes, for a variety of reasons, your invoices may remain unpaid and become a problem to the business. In situations like this, when the two parties are at stalemate, it may be worth involving a 3rd party to collect the debt on your behalf. Importantly, if your debt is overseas, you would benefit from using an International Debt Recovery specialist to ensure they speak the same language and communicate more effectively.


At Octempo, our aim is to make sure our customers never have to worry about bad debt again, so if you want further information on Credit Checks, Credit Control or UK and International Debt Recovery, request a call back or contact us today.