Debt is a real issue for many SMEs in the UK; in fact a series of studies last year showed that the average SME’s debt now stands at £20,403 – which is an increase of more than 70% compared to 2016 and with Brexit and the insecurities it is bringing looming, this figure doesn’t show any signs of reducing.

With this in mind, more and more businesses are looking towards third parties for help with collection of overdue payments. However, there’s no denying that the stigma associated with the debt collection industry is holding back many businesses from getting help to recover their debts. To help dispel some of the myths surrounding the sector, we’re tackling some of the 5 biggest misconceptions surrounding debt collection agencies:

Myth 1: Debt collectors are only for late bills
The quicker you report your debts, the more likely they are to be collected. So instead of wasting valuable time chasing debts yourself, it could be much easier to pass them onto a third party who specialise in this area. It only takes a couple of minutes to sign up to DebtCase and you can start collecting debts for free as soon as you’re ready to.

Myth 2: Third parties could have a negative impact on relationships with my customers
A good debt collector knows that maintaining customer relationships is paramount for your business. All our agencies are vetted and members of the Credit Services Association; meaning they come with the knowledge and expertise to handle collecting your consumer debts sensitively, but effectively.

Myth 3: Third parties are too expensive for SMEs
It’s true that some third parties come with hefty prices and hidden extras, so be sure to do your research first. However, with DebtCase, you only pay once your debt has been collected. Signing up is free and can easily be done here.

Myth 4: A solicitor is a better option
Whilst solicitors’ can be effective, this can be a very expensive and time consuming option. Furthermore, a good debt collector will often be able to recover the debts for you before having to resort to legal action.

Myth 5: Third parties could damage my businesses’ brand
Again, a good debt collector will understand your business and its ethos and work in a way which will not affect your businesses’ reputation. Here at DebtCase, we carefully select the right agencies for your business, to ensure a seamless experience.

Want to learn more? Find out how to start recovering your outstanding debts with DebtCase here.