Pandemic makes late payment a bigger issue
Evidence shows that the ongoing Covid-19 pandemic has exacerbated a culture of longstanding late payment problems for UK businesses.
Research by the Institute of Directors has identified that almost two in five business have faced an increase in late payments and overdue debts during the pandemic, with one in ten saying that late payment problems had become significantly worse.
The government is considering giving stronger powers to its small business commissioner, who can mediate on payment disputes between companies.
A poll of 799 directors found that late payments are a perennial issue for small and medium-sized enterprises and the pandemic certainly hasn’t helped things. With so much pressure on cashflow, many companies have been left in the lurch through no fault of their own.
The government has said it would consider new powers, such as the ability to fine, saying that late payments owed to small businesses had reached £23.4 billion, which further threatening the survival of many companies during the pandemic.
In reality, there is no quick fix to solving late payments. The challenge is ingrained and will not be fixed by one specific power or another
It is anticipated that issues are likely to increase as continued Covid-19 restrictions take their toll and emergency state support schemes begin to be wound down.
How Athena Debt Recovery Can Help
Athena Debt Recovery (ADR) is the dedicated debt recovery department of Athena Solicitors LLP. The team at ADR have over 80 years combined experience in the corporate debt recovery field and bring with them a wealth of knowledge and expertise in debt recovery steps to aid your business.
At Athena Debt Recovery we provide a considered approach to speed up debt recovery collections whilst minimising customer conflict and reducing the risk to your business.
Our service is tailored to match the individual needs of your business and we pride ourselves in offering bespoke, cost effective solutions to your debt recovery needs – from simply chasing late payers to legal proceedings including all county court and insolvency processes.
We are totally dedicated to helping our clients improve cash flow and increase the profitability of their businesses and we use the latest in Debt Recovery software enabling us to process both prelegal and legal collections promptly and efficiently.
About the author
Senior litigation executive and manager
Iain is a senior litigation executive and manager of Athena Debt Recovery which is part of the firm’s commercial litigation department supervised by our head of commercial litigation partner Stephen Boyd.
Iain has over 25 years experience in Commercial Debt Recovery having worked in both Private Practice and Industry and has extensive experience working across all industry sectors and has a particular expertise in working with Insolvency Practitioners in advising and recovering outstanding insolvent company ledgers.
Iain brings a pragmatic and commercial approach to recovering debts.
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