Recovering debts can help firms survive the credit crunch
Apr 16 2008
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Companies that ensure that they have reclaimed all debts owing to them now, will be better able to continue concentrating on growth if the credit crisis deepens, according to a law firm.
Debt recovery manager for Hewitsons Penny Wilkinson says that the cost of labour and raw materials will grow over the coming year.
'These are issues which most businesses will be unable to avoid, without seriously affecting the efficiency of a company’s services and the quality of their product,' she comments.
Wilkinson adds: 'Cash flow will, more than ever, will be the focus for every business, whatever its size, and is the one area that companies can do something to improve.'
According to research by BACS, the automated payment system, small to medium-sized enterprises (SMEs) are currently owed a total of around £18.6 billion - a figure which has risen by £2.6 billion since the beginning of 2007.
The body advises small business owners to join the 19 per cent of SMEs seeking independent advice to help in debt recovery.
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Comment by Tony Law
Sunday 27th April 2008Hi, I would like to post a question for all of us to consider. If we do business with those we may call friends and then find this group of customers/friends end up the worst payers how do we keep the friends and collect the money owed? Tony. Bluecygnet
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