< Back to previous page

Fear of debt collection 'legalese' stops UK companies from increasing cash flow, report claims

Published on 18 Jan 2010 under category: legal

Businesses in the UK are less likely to outsource debt collection because of difficulties in understanding legal language, according to a new report from a debt specialist.

Dutch company Atradius surveyed over 3,500 businesses across twenty countries including the United Kingdom, the USA, France and Hong Kong for its annual Global Collections Review.

Raymond van der Loos, managing director at Atradius, said: "Despite the expected similarities such as how businesses assess success rates or intimate knowledge of in-country and global collections landscapes, the survey also revealed many geographic and cultural variations."

The majority of firms were outsourcing during the recession in a bid to ease cash flow.

"Additional services" were a big draw for British businesses but most did not consider this the most important factor in selecting a debts collection partner.

Just under a quarter of UK firms would stick to using internal sources because of difficulties with legal language (22 per cent).

Other reasons cited for outsourcing were using internal sources (60 per cent), costs (49 per cent), and lack of trust in outside agencies (13 per cent).

If you require advice on Insolvency and Bankruptcy please call us on +44 (0) 20 7381 0101 and ask for Katherine Sillett.