SMEs avoid debt recovery because they find it uncomfortable

By Gillian Crotty

New research suggests that 81 per cent of small business owners in Northern Ireland and the rest of the UK avoid chasing debts because they find the process 'uncomfortable', and 19 per cent write off debts because they are afraid of antagonising customers.

The research by Satago suggests that 34 per cent of SMEs in Northern Ireland and the rest of the UK are writing off thousands of pounds of debt each year, and a quarter of those surveyed say the problem of late customer payments is getting worse. The business owners appreciate that they could recover more debts if they were more proactive, with 13 per cent saying they could halve the amount of debt they write off each year if they put more effort into debt recovery.

Astonishingly, the research found that 77 per cent of SMEs who took part in the survey do not have a debt recovery process or person charged with chasing customer payments. Steven Renwick Of Satago advised SMEs to be more proactive in chasing debt, to "get a process in place, use the law and work with a third party to remove the distress of chasing".

If you would like to receive information about a solicitor debt recovery service contact Wilson Nesbitt in Belfast by calling 0800 840 9291. Or to read more information on our website click here.