When payment delays scale, even single-digit percentages can translate into millions in unrecovered revenue. With over 579,000 UK companies in significant financial distress in Q1 2025 (Begbies Traynor), it’s clear that the margin for error is narrowing.
Here are seven practical steps to keep high-volume debt under control.
1. Segment Clients by Risk, Not Just Revenue
Revenue alone isn’t always the best indicator of whether a client will pay. Looking at factors like credit risk, sector pressures and payment behaviour gives finance teams a sharper view of where the real exposure lies. This makes it possible to manage the largest accounts with care while still keeping a clear line of sight on the smaller ones.
One logistics client we worked with found that mid-sized customers were responsible for the majority of overdue balances not their top ten accounts which they’d initially thought. Collectively, these debts were larger than their biggest single client. By adjusting their monitoring to capture those mid-tier risks, they were able to reduce overdue balances by more than 20% in the following quarter.
2. Keep Credit Terms Under Review
Credit terms that worked a year ago might not be fit for today’s environment. Many clients are already carrying heavy borrowing, the average UK company now owes around £365,000 (Swoop Funding). In this context, extending generous terms without regular review can expose service providers to unnecessary risk. Reassessing terms regularly helps balance competitiveness with financial protection.
3. Watch for Early Warning Signs
Missed payments are often the final stage of a problem that’s been building. Slower approvals, sudden changes in order volume or a rise in invoice queries can all be early signs of strain. Building these indicators into monitoring systems helps teams step in before balances spiral.
One national service provider noticed a sudden spike in invoice disputes on low-value items from a key client. Within three months, the client defaulted on a seven-figure balance. Escalating earlier, based on the pattern of disputes, could have significantly reduced the eventual loss.
4. Balance Automation with Human Oversight
Automation is essential when you’re handling thousands of invoices. It speeds up reminders while tracking activity and cutting manual work. Once payments become seriously overdue, human contact then usually becomes more effective. Combining automation for routine chasers with personal intervention on higher-risk accounts creates a balanced, scalable process.
We worked with a facilities management provider who automated their first two reminder stages and then flagged any account over 45 days for personal outreach. This blended approach cut their days sales outstanding by two weeks and improved client response rates.
5. Escalate Decisively
With over 45,000 UK businesses in critical financial distress in Q1 2025 (Begbies Traynor), timing is everything. Holding back escalation for too long often reduces recovery prospects. Defining clear escalation points, whether based on time overdue or repeated broken promises, ensures action is taken while debts are still recoverable.
6. Keep Records Litigation-Ready
Even valid debts can be difficult to recover if the paperwork isn’t watertight. Centralising contracts, agreed terms and correspondence makes it easier to act quickly when needed. For organisations managing thousands of accounts, having litigation-ready records is one of the simplest ways to strengthen recovery prospects.
We worked with a telecommunications company whose customer contracts and service agreements were stored across multiple platforms. By consolidating these into a single system, they were able to respond to disputes immediately and strengthen their position when pursuing overdue balances.
7. Refresh Strategy in Step with the Market
Annual reviews are no longer enough. Insolvencies in England and Wales were 15% higher in May 2025 than in May 2024 (GOV.UK). With conditions changing so quickly, strategies that worked last year can leave you exposed today. Reviewing processes quarterly helps keep risk management aligned with the market.
For high-volume service providers, the basics of debt management aren’t the issue, execution is. The companies that win are the ones that act earlier, document better and escalate faster. This discipline helps protect millions in revenue.
Collections+ provides large organisations with the extra firepower they need to tighten their process and recover more, without adding complexity.
