We have set up a partnership with one of the UK’s leading debt collection and cash flow management companies to help IT contractors solve late payment issues with end clients and agencies.
Late payment problems
Over the past few years, there has been a marked increase in the proportion of invoices that are paid late.
Recent research from Bacs estimates that in 2015 a huge 80% of all companies that experience late payments say they are being kept waiting one month or longer beyond their agreed terms before receiving payment.
For contractors who encounter a late-paying client or recruitment agency, it can take just one single overdue invoice to cause significant cashflow problems.
Following several requests for help from IT Contracting visitors, we decided to find a reliable and trustworthy provider to help contractors deal with late-paying clients.
Why Safe Collections?
We recently got in touch with Safe Collections after a customer failed to settle several invoices, totalling over £2500. After months of calling and emailing the client, our patience was exhausted. Thankfully a business partner, who also runs a business news site, recommended the services of a specific debt collection firm.
We emailed the details of the overdue amounts, and the client’s contact details to the recovery firm, who dispatched an ‘appropriately worded letter’ to the client.
Literally the next day, the client called us with some lame excuses why the payment had yet to be made and sent over the full sum owed via CHAPS the same day.
On several subsequent occasions, we have simply used the threat of contacting our debt collection partner to secure overdue payments.
Legitimate companies simply will not want to have a record of late payment or County Court Judgements recorded against their names on the public record or with credit reference agencies.
Rates for Contractors
Using our partner recovery service, the late-paying client will typically be sent an initial demand for payment, followed by a series of phone calls by the experienced credit management team to secure the balance owed. If legal action is required Safe Collections have legal partners across the UK and internationally.
There are no upfront payments for pre-legal collection, no hidden charges if no funds are collected and commission starts at just 5% of the recovered amount.
Make sure to mention ‘IT Contracting’ when you visit the Safe Collections site to receive preferential rates for collection.
It is worth noting that we do not benefit financially in any way by recommending this company – it is just a good service we’re happy to promote to our visitors.
Here are some guides published elsewhere on our site, and some external resources which you may find useful if you’re experiencing late payment problems:
- Contracting and dealing with late payment problems (a series of ‘top tips’ from the IT Contracting team based on our experiences, and those of many of our business partners over the years).
- 5 ways to deal with late-paying clients (written by Emily Coltman, chief accountant for FreeAgent, a very useful online accounting provider).
- Late payment – the legals (GOV.UK guide to late payment legislation).