Times are tough for many and there’s little evidence that anything will change soon. As international milk prices continue to fall and the New Zealand economy muddles along the bottom, so everybody’s debt levels are rising. Invoices are going unpaid for up to 120 days at a time, according to one credit management company.
Data from credit agencies indicates a disappointing future of more unpaid invoices and company collapses as a lack of cash flow drives them under. Debt collection and debt recovery agencies say the situation is worsening and recommend businesses carry out credit reference checks to avoid the frustrations of chasing clients for late payments.
The last thing any business owner wants is to deal with the often financially-crippling scenario of having to recover debts totalling thousands of dollars by customers who don’t pay. An increasing number of New Zealand firms are delaying their bill payments, a trend that can draw an increasing number of vulnerable businesses into the late payment cycle.
The day an expected payment from a customer is missed, a business should be on the phone to query it. Firms must proactively monitor and manage any customers who are struggling to pay and even customers with a good track record of payments should be managed and monitored. For small businesses in particular, going through the process of recovering these debts can be difficult and time consuming and the delay in cash flow can push them into severe financial stress.
That’s when debt recovery software like iCollect can assist. Managing credit and debt collection does not have to be an onerous task. Getting the right system is like a professional safety check. With the right debt recovery software in place you’ll know where your clients are at so you can make the best, timely decisions for the success of your business.