If you’re having trouble getting your bills settled, if managing your cash flow is made difficult by recurring delinquencies, or even just if you feel that routine calls to your customers to manage your billing problems are a waste of time, opt for the decentralization of the collection of your unpaid invoices. Companies specializing in debt collection can assist you and avoid unpleasant surprises.


The scourge of unpaid invoices

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Did you know? The total amount of unpaid invoices represents a total of 56 billion dollars each year, or 2% of French GDP.

It is a real scourge, which unfortunately leads companies to bankruptcy every year. It is estimated that 25% of bankruptcy filings are due to defaults.

Companies specializing in debt collection often represent a ready-made solution, to avoid significant additional costs for impacted companies.

Even if we note that small structures suffer more than large ones from late payments, it is above all the sector of activity that will influence the level of risk.

Thus, the hotel and restaurant and trade sectors suffer from shorter payment terms than that of services.

The companies most affected by unpaid invoices are those involved in the communication, information and business support activities.

In addition, contrary to what one could imagine, large companies are the worst payers: one large company in two pays its suppliers late, against one SME in three!


Direct consequences

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Unpaid invoices have a direct impact on the viability of businesses, and the measures taken by companies to try to find their property have a certain cost:

  • Obviously, the first item impacted is the amount of the unpaid invoice
  • Costs related to legal proceedings such as the use of a lawyer, a bailiff or an expert, must also be taken into account
  • In addition, internal costs are considerable in terms of human resources, time / man … these costs can quickly total up to 50% of the amount of arrears!
  • Finally, the shortfall in productivity of the company in the event of an unpaid invoice has been quantified, it represents around 6% of the amount of the unpaid amount.
  • Note that recurring delinquencies which have a heavy impact on the company’s cash flow lower the confidence of banking establishments, which are less inclined to accept a request for credit afterwards.

In summary, companies with substantial receivables considerably reduce their chances of going concern: they very significantly increase their risk of ending up in default.


Debt recovery organization; a suitable solution?

Debt recovery organization; a suitable solution?

Debt recovery organizations are designed to allow businesses to maintain their activity in the event of default, however small.

It is the organization’s consultants who carry out all the necessary steps on your behalf: reminder by phone for an amicable recovery, then implementation of a legal procedure with a request for payment order.

The use of a debt recovery organization allows effective results to be obtained: very clear reduction in payment periods, rapid recovery of unpaid debts from the out-of-court procedure.

A reasonable solution, which allows to gain in serenity and which represents a saving of time and certain energy.

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