Debt Recovery an Increasing Problem for Businesses

Times are tough for many and there’s little evidence that anything will change soon. As international milk prices continue to fall and the New Zealand economy muddles along the bottom, so everybody’s debt levels are rising. Invoices are going unpaid for up to 120 days at a time, according to one credit management company.

Data from credit agencies indicates a disappointing future of more unpaid invoices and company collapses as a lack of cash flow drives them under. Debt collection and debt recovery agencies say the situation is worsening and recommend businesses carry out credit reference checks to avoid the frustrations of chasing clients for late payments.

The last thing any business owner wants is to deal with the often financially-crippling scenario of having to recover debts totalling thousands of dollars by customers who don’t pay. An increasing number of New Zealand firms are delaying their bill payments, a trend that can draw an increasing number of vulnerable businesses into the late payment cycle.