Cash Flow Pressures Forcing UK Agencies to Go Legal Earlier

Collection agencies in the UK are facing increased pressure to accelerate their cash flows. As such, many are turning to legal collections far earlier than ever before, reports Business Credit Management ? UK.

According to the Credit Services Association (CSA), the association that represents the UK debt collection industry, a trend has been identified over the last 12 months of companies compelling collectors to take legal action on commercial debtors often within days of receiving an order to collect.

Godfrey Lancashire of the CSA commented, ?Businesses want their cash, and see litigation as the fastest way of getting it. Whereas before, an Agency would have several weeks to achieve a result, now they are being instructed to go legal often within days and occasionally immediately.?

The CSA?s findings dovetail another survey by Better Payment Practice Group that found that four out of five businesses have successfully issued a winding up order ? a device to put a business into compulsory liquidation when it does not pay its debts.