In the last financial year, small businesses wrote off over £5 billion in unpaid debt

A poll conducted by YouGov on behalf of Direct Line found that almost 1 in 5 SMEs (19%) had written off an average of £31,330 worth of unpaid bills.

This is a huge problem for smaller businesses because bad debt can lead to staff cuts, delayed investment plans and, in worse cases, insolvency.

The New Year is a time where bad debt can hit hardest for many businesses, as there are various bills (such as taxes) that need to be paid in January.

January is a month where business failure is high, so debt recovery action, particularly over the Christmas and New Year period, is vital. The start of the new year is an excellent time to improve your credit control and aim to recover debts efficiently.

It is a common misconception that recovering unpaid debt through a lawyer or debt recovery specialist is expensive, however there is nothing more expensive than bad debt for a small business.

If you're looking to improve your cashflow and find help recovering debts, get in touch with one of our debt recovery specialists.

Article by Business News Wales