Today, we’re looking at a major warning sign for households, energy suppliers, credit control teams and the wider UK debt collection sector.

Consumer energy debt in Britain could reach £7 billion by the end of 2026 if no further action is taken. At the same time, a planned £500 million energy debt relief scheme for some of the poorest households has still not launched because of delays around legislation and data sharing.

What Has Happened?

The UK’s energy debt problem is getting bigger.

Energy UK estimates that consumer energy debts are currently around £5.5 billion, with the figure likely to rise to £7 billion by the end of the year unless action is taken.

The planned relief scheme was designed to clear around £500 million of energy debt for eligible households, but it has not yet started.

The delay matters because energy debt is not just another unpaid bill. For many households, it is linked to wider financial stress, rent pressure, council tax arrears, credit card balances, personal loans and everyday living costs.

When one priority bill becomes unaffordable, other debts can quickly follow.

Why This Matters For Debt Collection

This story highlights a key issue in modern collections: debt recovery is no longer just about chasing payment.

It is about understanding affordability, vulnerability, repayment capacity and early intervention.

For energy suppliers and collection teams, the challenge is clear. If debts continue to grow, more customers may fall into long-term arrears. That makes recovery harder, slower and more sensitive.

For households, the risk is that unpaid energy bills become part of a wider debt spiral.

For the wider economy, rising arrears can reduce consumer confidence, increase pressure on public support schemes and create more disputes between creditors and customers.

The Bigger Picture

The delay also shows how policy and collections are increasingly connected.

Ofgem says it is ready to launch the scheme once approvals are granted, but the government still needs to deal with the data-sharing rules needed to identify eligible households.

That creates a gap between recognising the debt problem and actually delivering support.

In debt collection, timing is everything. The longer a debt sits unresolved, the more difficult it can become to recover. That applies to commercial debts, consumer debts and utility arrears.

What Creditors Can Learn

There are 3 important lessons from this story.

First, early engagement matters. Waiting until arrears become unmanageable usually reduces the chance of successful recovery.

Second, affordability must be central. A realistic repayment plan is often more effective than aggressive chasing.

Third, data matters. Whether it is an energy supplier, a lender or a business creditor, better information helps identify who can pay, who needs support and who needs a different recovery route.

Key Takeaway

The UK’s energy debt problem is not just an energy sector issue.

It is a debt collection issue, a cost of living issue and a cash flow issue. If consumer energy debt reaches £7 billion, the pressure on households, suppliers and collection teams will grow further.

The key question is whether support arrives early enough to stop more people falling deeper into arrears.

#DebtCollection #DebtRecovery #UKDebt #EnergyDebt #CostOfLiving #CreditControl #ConsumerDebt #Collections #Arrears #LatePayments #UKBusiness #FinancialPressure #DebtMatters #CashFlow #Ofgem #EnergyBills

Today, we’re looking at a warning sign for UK businesses, credit control teams, debt recovery teams and commercial collections.

What Has Happened?

BTG’s Red Flag Alert data shows that UK businesses in critical financial distress have increased by more than a third. In Q1 2026, 62,193 companies were in critical financial distress, up from 45,416 in the same period last year. That is a 36.9% year-on-year increase.

This is not just a number on a spreadsheet. Behind it are businesses struggling to pay suppliers, meet payroll, manage tax obligations, deal with energy bills and keep cash moving. For creditors, the warning is clear. The longer an invoice remains unpaid, the greater the risk that the debtor’s position gets worse.

The Sectors Under Pressure

All 22 sectors monitored by Red Flag Alert saw an annual increase in critical financial distress.

Key increases include:

• Hotels and accommodation: up 69.3%
• Leisure and cultural activities: up 65.9%
• Sports and health clubs: up 51%

That shows the pressure is spreading, especially across sectors exposed to discretionary spending. When households cut back, businesses that rely on hospitality, holidays, fitness and leisure often feel it quickly.

Why This Matters For Credit Control

The issue is wider than hospitality and leisure. Businesses in significant financial distress rose by 9.6% annually to 634,867 in Q1 2026. Construction had 95,355 businesses in significant distress, support services had 92,983, and real estate and property services had 79,118.

These sectors matter because delayed payments can spread through supply chains, especially where there are staged payments, retentions and disputes.

What Is Driving The Problem?

• Key pressures include:
• Rising labour costs
• Higher employer National Insurance contributions
• Wage increases
• Energy price pressure
• Inflation
• Weak consumer confidence
• Economic uncertainty

For businesses operating with little margin for error, these pressures can turn cash flow problems into serious debt risk.

The Debt Collection Angle

Creditors cannot afford to treat overdue invoices as just an admin issue. An unpaid invoice is often an early warning sign. It may mean a customer is disorganised, but it may also mean they are prioritising other creditors, struggling with cash flow, delaying payments deliberately, or moving closer to insolvency.

That is why early intervention matters. If you wait too long, you may find yourself behind HMRC, secured lenders, landlords, employees and creditors. You may also lose the chance to negotiate while the business is still trading.

Warning Signs To Watch

Businesses should pay attention when a customer:

• Starts paying late
• Asks for repeated extensions
• Avoids calls or emails
• Raises vague disputes
• Changes payment promises
• Stops communicating

When business distress rises, the cost of delay rises too. A debt that could have been recovered after 14 or 30 days may become much harder after 90 or 120 days. By then, the debtor may have several creditors chasing, reduced cash flow, legal pressure, or insolvency advice already in motion.

#DebtCollection #DebtRecovery #CreditControl #LatePayments #UKBusiness #BusinessDistress #OverdueInvoices

In today’s episode of Debt Matters, we look at a UK business debt story showing how late payments are putting more pressure on companies, cash flow and credit control teams.

A new update based on R3’s Business Health data says late payment pressure intensified in Q1 2026. Overdue invoices rose to 17.48 million, up 3% compared with the same period last year, while 1.57 million businesses had overdue bills on their books. Insolvency-related activity fell 6% compared with Q1 2025, but rose 9% compared with Q4 2025, reaching 7,212 cases.

Why this matters

Late payment is not just an admin issue. For many businesses, it is a direct cash flow problem.

When invoices are not paid on time, firms can struggle to pay suppliers, wages, rent, tax bills and day-to-day costs. One unpaid invoice may be manageable, but when late payments build across several customers, pressure can quickly spread through the business.

This is especially serious for SMEs, where cash reserves are limited.

The warning signs

Overdue invoices are increasing.

• More than 1.5 million businesses are carrying overdue bills.
• Insolvency-related cases rose compared with the previous quarter.
• Rising energy, fuel, wage and operating costs are adding pressure.
• Businesses cannot treat credit control as something to deal with later.

Regional and sector pressures

The West Midlands recorded the highest number of overdue invoices at 3.05 million, followed by Greater London with 2.91 million and Scotland with 2 million.

Construction remained the most distressed sector in Q1 2026, with 1,159 insolvency-related cases. Wholesale and retail followed with 975 cases, while accommodation and food services recorded 923 cases.

For debt collection and credit control teams, this matters because payment delays can quickly affect suppliers, landlords, staff and lenders.

What businesses should take from this

The key message is simple: late payment needs early action.

Strong credit control can make a major difference, especially when it includes clear payment terms, reminders, customer communication and a structured escalation process.

A good process should include prompt invoicing, reminders before invoices become overdue, fast follow-up when payment dates are missed and a clear route for persistent late payers.

The longer an overdue invoice is left, the harder it can become to recover. That is why prevention and early intervention are so important.

The wider impact

Late payment does not only affect the business waiting to be paid. It can move through the wider economy.

If one company delays payment, another company may delay paying its own suppliers. This can create a domino effect, especially in sectors with long supply chains such as construction, retail, hospitality and manufacturing.

The UK Government has previously stated that late payments cost the UK economy £11 billion each year and lead to the closure of 38 UK businesses every day.

Why this matters for debt collection

For the debt collection industry, this story highlights the need for fair, professional and timely recovery action.

Debt collection should not only be seen as a last resort. Used properly, it can help businesses protect cash flow, maintain relationships and stop unpaid invoices becoming business-threatening debts.

#DebtMatters #DebtCollection #UKDebtCollection #LatePayments #CreditControl #BusinessDebt #InvoiceRecovery #CashFlow #SMEs #DebtRecovery #Insolvency

UK businesses are falling behind on AI in payments and collections

In this episode of Debt Matters, we look at a new UK payments and collections story with big implications for credit control, arrears management, and business cash flow.

UK businesses are using AI in payments more slowly than their European peers. The gap is being linked to skills shortages, uncertainty around regulation, and hesitation about how much value AI can really deliver. At the same time, firms already using AI say it is helping reduce labour costs, improve predictability, and tackle late payments earlier.

This episode explores what that means for UK debt collection teams, finance leaders, and businesses trying to get paid faster without damaging customer relationships.

Main points

1. The UK is behind Europe on AI in payments

61% of UK businesses are using AI in payments, compared with a European average of 66%. That is a wider gap than last year, when the UK stood at 58% versus 59% across Europe.

That matters because payments management is no longer just an admin task. It now sits much closer to risk management, customer experience, and collections performance.

2. AI is moving beyond hype into the real payments cycle

AI can support the full payment journey, including invoice generation, account queries, dispute handling, and identifying invoices that are likely to go overdue. It can also provide more tailored support to customers.

For debt collection professionals, that means AI is not just about replacing manual tasks. It is about spotting risk earlier and improving the timing and tone of collections activity.

3. Late payments are the real business problem underneath this story

Intrum’s UK managing director, Gavin Flynn, said firms struggling with late payments could use these tools to reduce delays and improve predictability. Businesses already using AI in payments are also said to be saving £6.6 billion a year in labour costs, equal to around a fifth of the overall cost of chasing late and non-payment.

Why this matters for debt collection in the UK

This story is not really about whether AI is trendy. It is about whether UK businesses can modernise collections before bad debt, admin pressure, and slower cash flow become even bigger problems.

There are 3 clear takeaways here:

Businesses that wait too long may end up collecting more slowly than competitors. Only 48% of UK businesses believe they will fall behind if they fail to implement AI tools in the back office, which suggests many firms may still be underestimating the risk.

The biggest barriers are practical, not theoretical. The main blockers highlighted are lack of skills and uncertainty over regulation, not lack of possible use cases.

Customer behaviour may be changing faster than business assumptions. The gap between what firms think customers want and what consumers say they would accept could become important in digital collections strategies.

#DebtMatters #DebtCollection #CreditControl #LatePayments #AccountsReceivable #Collections #CashFlow #UKBusiness #Fintech #AI #PaymentManagement #CommercialDebt #Arrears #RiskManagement #B2BPayments

In today’s episode, we’re looking at new findings suggesting that major economic shocks may have had less impact on debt collections than many expected.

What Intrum Found

Credit management firm Intrum analysed portfolios of defaulted debt from 2016 to 2025 and found that average collections on established paying portfolios did not significantly deteriorate during either the Covid-19 pandemic or the cost-of-living crisis. Instead, repayment behaviour appeared to be driven more by portfolio ageing and past performance than by short-term macroeconomic disruption.

Why This Matters

That is an important finding for anyone working in collections, recoveries, credit control, or debt purchase.

The findings suggest collections curves tend to revert to expected depletion trends over time. Intrum also found that during the pandemic, the treatment portfolio actually performed slightly better than the control group, pointing to a surprising level of resilience in repayment behaviour, helped in part by government support measures at the time.

Economic Conditions Still Play A Role

But that does not mean economic conditions do not matter at all.

The analysis found some macroeconomic influence, including a small positive effect from real wage growth on repayment intensity. At the same time, the findings suggest that short-term economic shocks may be less important to forecasting than shifts in consumer behaviour and the way portfolios evolve over time.

The Role Of Collections Teams

Another key takeaway is the role of collections teams themselves.

According to Intrum, operational managers said collections performance was sustained not just by economics, but by proactive servicing, tailored engagement, flexible repayment arrangements, and the ability to adapt quickly through technology. In other words, strategy and execution may matter more than headlines alone when it comes to recoveries.

What It Means For The UK Debt Collection Sector

For the UK debt collection sector, this raises a useful question.

If collections performance can stay relatively stable through periods of major disruption, then firms may need to focus less on reacting to every short-term shock and more on customer behaviour, segmentation, servicing models, and medium-term risk indicators such as wage pressure and housing costs.

It also suggests that well-run collections operations can make a real difference, even in difficult environments.

Final Takeaway

That matters for creditors, agencies, debt buyers, and in-house collections teams trying to plan ahead in a period where arrears, affordability pressure, and financial vulnerability are still major concerns across the UK.

This story is a reminder that economic pressure does not automatically translate into weaker collections. In many cases, outcomes may depend more on how accounts are managed, how early customers are engaged, and how repayment options are structured.

#DebtMatters #DebtCollection #UKDebtCollection #Collections #Arrears #Recoveries #CreditManagement #CreditControl #DebtRecovery #FinancialServices #ConsumerFinance #LatePayments #UKBusiness #Insolvency #PaymentBehaviour

Small business confidence in the UK may have improved slightly at the start of 2026, but the overall picture is still worrying. The Federation of Small Businesses said confidence remained negative in Q1 2026, with the Small Business Index at -53, up from -71 in Q4 2025. Even with that improvement, confidence has now stayed negative for 8 straight quarters.

April has brought another wave of cost increases that many smaller firms are struggling to absorb, including:

• Higher business rates
• Rising energy standing charges
• Increases to the National Living Wage
• Wider Statutory Sick Pay obligations
• Making Tax Digital compliance
• Lower take-home pay for directors due to dividend tax changes

The result is a real squeeze on cash flow.

87% of firms are seeing costs rise year on year, and 26% are dealing with double-digit increases.

The main pressures were:

• Taxation at 58%
• Labour at 56%
• Utilities at 53%

Revenues are also going the wrong way. 54% of small firms said revenues had fallen over the previous 3 months, while only 24% said revenues had increased. Looking ahead, 45% expect revenues to fall further.

This matters for collections, credit control, and accounts receivable because when costs rise and revenue falls at the same time, payment behaviour often worsens. Businesses begin stretching payment terms, delaying responses, raising disputes late, or simply going quiet.

That is why this is more than an economic story.

It is a cash flow story, and for many SMEs, cash flow pressure quickly becomes a collections problem.

The employment picture is also weak:

• 21% are planning staff reductions
• 8% are planning to recruit
• 23% had already reduced staff in the last 3 months
• 8% increased headcount

Growth expectations remain soft too.

More firms expect to contract, close, or sell over the next year than expect to expand, by 30% to 22%.

One of the most important figures for credit professionals is this: 69% of small firms are still affected by late payments.

That is a huge warning sign. Late payment is not a side issue. It remains one of the biggest barriers to stability and growth for UK businesses.

There is also growing pressure for reform. The FSB says the Government should include late payment legislation in the next King’s Speech on 13 May 2026. The message is clear: if ministers want growth, they cannot ignore the damage late payment causes smaller firms.

The takeaway is simple. Confidence may be slightly up, but it is still deep in negative territory. Costs are rising, revenues are falling, hiring is weakening, and late payments remain widespread.

For businesses trying to protect cash flow, strong credit control is not optional. When margins are tight, one unpaid invoice can do serious damage.

#DebtMatters #DebtCollection #CreditControl #LatePayments #CashFlow #SMEs #UKBusiness #BusinessDebt #Collections #AccountsReceivable #Insolvency #SmallBusiness #CommercialDebtRecovery #UKNews

In this episode of Debt Matters, we look at the growing pressure on UK businesses as weaker growth, rising costs and continued insolvency activity create a tougher environment for getting paid on time.

A new UK business update from the Credit Protection Association says firms are dealing with slowing demand, rising wage costs, higher fixed costs and ongoing geopolitical disruption. This is tightening cashflow across the economy and making strong credit control and early action on overdue accounts even more important.

One of the biggest warnings in the update is around business rates. A survey mentioned in the update says upcoming business rates changes could put up to 340,000 firms at risk, especially in retail, hospitality and leisure. For anyone involved in collections, that matters because when fixed costs rise sharply, invoices often take longer to get paid and smaller suppliers usually feel it first.

The update also points to rising wage pressure. It says pay in retail and hospitality has risen by 18% over the past year, driven largely by increases in the National Minimum Wage and changes in employment law. Even where that is positive for workers, it adds another cost burden for businesses already trying to manage weaker demand and tighter margins.

Retail sales are another red flag.

According to the update, UK retail sales fell as households cut spending and prioritised saving. When sales soften, cash inflow weakens, and that often pushes businesses to stretch payment terms whether they admit it or not. In practice, that means more chasing, more broken promises to pay and a bigger need to spot distress earlier.

There is also a policy angle here.

The update says business groups have welcomed new government proposals on late payment, including stronger powers for the Small Business Commissioner and tighter rules on payment terms. But concerns remain around enforcement and implementation. That raises a bigger question for the market: are we looking at a genuine improvement in payment culture, or just another set of reforms that sound strong until they meet real-world behaviour?

The insolvency backdrop is still serious too.

The update highlights continuing failures across sectors and regions, including Westbridge Furniture entering administration with around 300 jobs at risk. It also lists 4 administrations and 82 liquidations in its insolvency watch section. That is a reminder that collections teams are not just managing late payment anymore. In some cases, they are dealing with narrowing recovery windows and customers whose financial position may already be deteriorating behind the scenes.

So, what does all this mean for debt collection in the UK right now?

Weaker growth is making payment delays more likely.

Higher wage bills and fixed costs are putting more pressure on cashflow.

Retail, hospitality and leisure may be especially exposed.

Insolvency risk means aged debt can become harder to recover more quickly.

Creditors may need faster follow-up and earlier intervention in 2026.

For creditors, finance teams and collection professionals, this is a sign that 2026 may demand faster decisions, firmer credit control and closer monitoring of vulnerable sectors. In this market, timing matters more, and waiting longer can cost you more!

#DebtMatters #DebtCollection #UKBusiness #LatePayments #Cashflow #CreditControl #Insolvency #SMEs #BusinessDebt #AccountsReceivable #TradeCredit #UKEconomy #PaymentRisk #Collections #FinanceNews.

Welcome to Debt Matters. Today, we are looking at a major UK government update on late payments and what it could mean for businesses, suppliers, and the wider debt collection landscape.

The Department for Business and Trade published its response to the late payment consultation on 24 March 2026. In that response, the government said late payments are estimated to cost the UK economy almost £11 billion a year, with around 14,000 businesses closing each year as a result. It also said businesses are owed an estimated £26 billion in late payments at any given time.

Some of the biggest proposals include:

• stronger powers for the Small Business Commissioner
• a maximum payment term of 60 days between businesses, with limited exemptions
• a statutory deadline for disputing invoices
• compensation where invoice disputes are raised too late
• statutory interest at 8 percent above the Bank of England base rate
• more reporting requirements for persistently late-paying large companies

Why this matters for businesses

One of the most significant proposed changes is the expansion of the Small Business Commissioner’s role. The Commissioner is expected to gain powers to investigate poor payment practices, adjudicate payment disputes outside the court process, and fine businesses that persistently pay suppliers late or fail to comply with the rules.

If these reforms go ahead, smaller businesses may have a more practical route to challenge non-payment without always having to rely on lengthy court action. Large companies with poor payment records could also face greater public and financial pressure to improve.

The 60-day payment rule

Another major proposal is the introduction of a maximum payment term of 60 days between businesses. The government said this is intended to make sure smaller businesses are paid within a maximum of 60 days.

It has also said it is not currently taking forward a reduction to 45 days, although that could be revisited in the future.

Invoice disputes and statutory interest

The response also sets out plans for a statutory deadline for disputing invoices. Under the proposal, if a business fails to raise a dispute within the time limit, it may have to pay compensation to the supplier.

Alongside that, the government wants all commercial contracts to include a right to statutory interest at 8 percent above the Bank of England base rate.

More transparency for late payers

There is also a transparency angle here. The government intends to require boards or audit committees of persistently late-paying large companies to publish commentary on why their payment performance is poor and what they are doing to improve it.

Large companies may also be required to report the interest they are liable to pay, and the amount actually paid.

What this means for debt collection

For the debt collection sector, this is an important story because it shows the policy direction very clearly.

Key points for the sector:

• more focus on prevention, not just recovery
• greater accountability for persistent late payers
• potential changes in how overdue accounts are escalated
• stronger support for smaller suppliers chasing payment
• more attention on payment culture across UK business

#DebtMatters #DebtCollection #CreditControl #LatePayment #UKBusiness #SmallBusiness #CashFlow #InvoiceChasing #AccountsReceivable #CommercialDebt #BusinessNews #UKDebtCollection #PaymentPractices #DebtRecovery #B2BPayments

Welcome to Debt Matters. Today, we are looking at a new government announcement that could shape how public sector debt is handled across the UK over the next few years. HM Treasury has launched its 2026 to 2030 Government Debt Management Strategy, setting out plans to give people and businesses clearer, more tailored support when repaying money owed to government.

The government wants repayment plans to be more realistic and affordable for people who are struggling, while still taking a firm stance against fraud and deliberate non-payment. According to the announcement, the strategy will use better data, earlier contact and more consistent treatment across departments, so repayment plans better reflect a person’s circumstances and ability to pay.

Why it matters:

This matters because government debt covers unpaid taxes, benefit overpayments, fines, fees and loans. The government says recovering this money is important because it helps fund public services such as the NHS, schools and policing.

The strategy is built around 3 main principles: preventing avoidable debt before it grows, resolving existing debt fairly and consistently, and improving skills and technology so debt can be managed more efficiently and compassionately.

Industry impact:

For the debt collection industry, this is an important development. It suggests a stronger focus on early intervention, affordability assessments and more joined-up collections practices across government. It also shows that the public sector wants to balance recovery with support, rather than relying only on pressure after arrears have already built up.

Government stance:

The government has also made it clear that this more supportive language does not mean a weaker stance overall. The announcement says there will still be a tough approach to those who intentionally avoid repayment or who obtained money through fraud or criminal activity.

Economic Secretary to the Treasury Lucy Rigby said the aim is to treat people fairly and give them the chance to repay what they owe in a manageable way, while also protecting taxpayers and recovering money where non-payment is deliberate.

Wider reaction

The timing is also notable. The strategy was published during Debt Awareness Week, led by StepChange Debt Charity. StepChange welcomed the strategy, saying it is positive to see more focus on fairness, early intervention and preventing avoidable problem debt. The Credit Services Association also supported the direction of travel, pointing to the value of early engagement, technology and specialist support in handling recoveries.

What this means:

For people in debt, it could mean clearer routes to support and repayment plans that are more manageable.

For government departments, it likely means more pressure to modernise how debt is identified, communicated and collected.

For the wider collections sector, it reinforces the importance of affordability, consistency and early contact as best practice.

This is one of those policy stories that may not sound dramatic at first, but it could have a real effect on how debt recovery works across the public sector between now and 2030.

Hashtags: #DebtMatters #UKDebtCollection #DebtRecovery #Collections #CreditControl #Arrears #PublicSectorDebt #HMTreasury #DebtManagement #DebtAwarenessWeek #StepChange #CreditServicesAssociation #UKFinance #Insolvency #LatePayment

Welcome to Debt Matters. Today, we’re looking at the latest business insolvency figures in England and Wales, and what they tell us about the trading environment for firms, suppliers, lenders and collections teams.

• In February 2026, 1,878 companies entered insolvency in England and Wales.
• That was 7% higher than January’s 1,749.
• It was also 7% lower than February 2025’s 2,015.
• Creditors’ voluntary liquidations made up 78% of all company insolvencies in February.
• Administrations were 30% higher than a year earlier.
• Compulsory liquidations were 35% lower year on year.

Key point:

• A 1-month rise on its own does not mean everything has changed.
• But it does show that pressure is still there for a large number of businesses.
• The monthly total moved up again after January.
• While levels are below some of the heavier periods seen between 2022 and 2025, firms are still operating in a climate where cash flow discipline matters every day.

Why this matters for debt collection:

• Business insolvencies rising month to month puts more focus on account behaviour.
• It raises practical questions for credit control and collections teams.

Questions worth asking:

• Which customers are slowing payments?
• Which accounts have gone quiet?
• Which debtors are still trading but clearly under strain?
• Which cases need acting on now rather than later?

Warning signs before insolvency:

• Payment promises to start to slip.
• Queries come in later than usual.
• The debtor asks for smaller part-payments.
• The debtor asks for more time without offering a clear schedule.
• None of these signs prove insolvency is coming.
• But when overall insolvency numbers start rising, these signs deserve more attention.

What the insolvency mix may suggest:

• With creditors’ voluntary liquidations making up 78% of cases, many businesses are taking that step themselves rather than being pushed there by the courts.
• That may suggest directors are deciding the business is no longer viable before matters move further down the enforcement route.
• Administrations being up on the year may also show that some firms are still trying to preserve value, sell assets or restructure rather than move straight to closure.

What this means for collectors and finance teams:

• The job is not only about chasing hard and fast.
• It is also about reading the account properly.
• If a debtor is still trading, still communicating and still able to agree a realistic payment plan, there may be value in staying commercial and keeping the relationship workable.
• But if the warning signs are building and engagement is falling away, waiting too long can reduce recovery options.

The balance businesses need to manage:

• Push too early and you may damage a customer relationship that is still worth saving.
• Push too late and you may end up as one of many unsecured creditors after the window for a better outcome has passed.