Firms Pay Price for Overtrading

Mainly affected have been start ups and fast growing businesses, who have had to pay out extra costs to suppliers and staff in advance of payments being received.

Managing Director of Admiral, Nichola Smith believes many businesses have learned a valuable lesson about how far to stretch themselves.

“On paper a surge in orders can look good for a business but we have had many people contact us because they are now feeling the strain on their cashflow.”

“One company said to us this week that if we hadn’t been able to recover their debt as quickly as we did, there was a strong chance they wouldn’t be able to carry on trading.

“Fortunately we managed to recover it within 7 days as we always try to do.”

Admiral have themselves grown quickly since starting out just 6 months ago and the company now has several clients across the country employing them on a regular basis.

They have a ‘no collection no fee’ policy and often work as a company’s ‘in-house’ finance team if preserving the customer relationship is important or particularly delicate.

Their biggest tip to businesses trying to collect debt is straight telephone contact and getting the client to commit to a time they can pay. Nichola believes the traditional methods of letters used by solicitors and other agencies are far too easy to ignore.

“One company recently contacted us about a debt that had been outstanding since January 2005. They had written several times but had failed to make an impact.

“By telephoning and visiting the same day we were able to pick up the cheque directly from their office and hand deliver it straight to our client.”

Admiral have now been employed on Chamberlink’s helpline offering support to any businesses suffering debt problems.

For free advice businesses can call 0870 850 2524.