Small businesses across Shropshire are being forced to write-off thousands of pounds in unpaid debts because they don’t have time to chase them up.
Dyke Yaxley Director, Marie Bramwell, said latest research had shown that 82% of SMEs had outstanding balances from debtors – and the average amount owed was just over £60,000.
“The survey revealed 19% of over 700 businesses who were questioned said they had written-off debts worth an average loss of £31,000.
“And 9% of businesses claimed they had written-off debts of over £100,000. Worse still, 40% said they had no idea how much they were owed.
“That’s a shocking statistic and just shows the importance of cash flow management for smaller businessess.”
Marie said there were many reasons why SMEs decided to write-off a debt rather than pursue it in order to reclaim what they were owed.
“May be the customer or supplier was insolvent so couldn’t pay the money, or they didn’t have enough funds available to cover the debt.
“Many small businesses said they simply didn’t have time to chase up debts and that they didn’t have enough funds themselves to chase up the debtors.
“Some SMEs were worried about damaging relationships with suppliers and customers if they took a more proactive approach to recovering unpaid debts, and a handful said they were unaware of how to go about it at all.
“There is all kinds of professional advice on offer to help small businesses chase up debts and SMEs should make sure they are fully aware of all the legal avenues open to them in order to reclaim the money they’re owed.
“Adequate insurance cover will also be invaluable to cover any loss in earnings that may arise if and when a client or supplier is unable to pay up.
“Don’t struggle on surrounded by unpaid debts – our professional and experienced team can help you find a way through the minefield and recover what you’re owed.
Dyke Yaxley Director, Marie Bramwell