This aligns with what we’re seeing in live cases, delays are becoming more accepted rather than treated as a clear sign something needs addressing. When overdue accounts begin to build up, internal teams are typically the first to feel it. Finance teams balance routine billing and debtor responses while trying to maintain consistent follow-ups. As volumes increase, activity becomes more fragmented, with attention pulled toward urgent issues and less time available to manage each account properly.
The pressure usually shows in small ways before it becomes more visible such as follow-up slips and rushed notes. Some accounts are left far longer than intended. These gaps create a growing backlog that teams struggle to regain control of, especially when new overdue accounts continue to appear each week.
Over time, the operational impact becomes clear. Processes that once worked well begin to slow down and finance teams find it harder to track the status of overdue accounts with confidence. This is often one of the earliest signs the debtor book is moving beyond internal capacity.
Breakdown in customer relationships
When communication becomes impersonal or forceful, even unintentionally, customer relationships suffer. High-volume debtor portfolios put finance teams under immense pressure, which can result in recovery becoming heavier than intended, for example through frequent chasing in short windows or escalation happening before issues have been fully clarified. Overdue invoices require a balance between regular follow-ups and maintaining the client relationship. Finance teams can protect these relationships by communicating empathetically, offering reasonable repayment options and prioritising follow-ups based on client history. Finance teams can protect these relationships by acknowledging known delays, agreeing practical repayment steps and adjusting follow-ups based on how the client has paid in the past.
In today’s social media driven world, dissatisfied customers can amplify negative experiences, damaging a business’ reputation far beyond the original invoice issue. When complaints start to surface publicly, it’s often a sign that recovery activity is no longer being managed as consistently as it should be.
In many cases, the goal is to prevent situations from reaching that point. This was the position American beauty brand, Revlon was in when they approached us. As a supplier of hair products to a number of salons, it was critical to protect both their reputation and long-standing client relationships. Upon receiving the documentation, we carried out a thorough review to understand the circumstances around each case. This allowed us to take the best course of action, from contact method to tone right through to how we approached recovery, resulting in Revlon preserving relationships with their clients while still recovering the outstanding balance.
In our experience, pressure tends to show in how communication is handled. Preparing teams with the right context on each account with clear boundaries around chasing and escalation helps prevent recovery from becoming unintentionally forceful or reactive.
The Impact of Overdue Invoices on Cash Flow and Forecasting
UK businesses are collectively owed an estimated £26 billion in late payments at any given time, according to the Small Business Commissioner, highlighting the scale of cash flow disruption many firms face due to high-volume debtor portfolios. When overdue invoices begin to build up, pressure on cash flow often appears sooner than expected. Funds that would normally support payroll, supplier payments or tax liabilities end up tied up in overdue accounts. To keep things moving, businesses often rely on short-term funding to cover gaps, adding cost and pressure at a time when margins are already tight.
When communication becomes inconsistent, finance teams are left working with incomplete information and less clarity over what’s likely to be paid and when. According to Intuit QuickBooks 62% of UK businesses report having outstanding invoices with the average business owed £21,400. As overdue balances build up, forecasting becomes less reliable and day-to-day decisions around budgeting, resourcing and priorities become harder to make. This is particularly pronounced when large volumes of accounts fall behind at the same time.
When volumes increase, having consistent MI reporting becomes critical. Pulling debtor activity, recent contact and emerging risk into one place provides finance teams with a clearer picture of what’s progressing and where attention is actually needed, rather than relying on fragmented updates across systems. Within Collections+, MI reporting shows recent contact, case stage and overall file movement in one place, so teams aren’t piecing updates together across different systems.
Keeping recovery structured as volumes grow
Effective collections still matter, but consistency in how recovery is handled becomes more important as volumes increase. Collections+ supports structured follow-up and clear case progression, reducing the strain on internal teams while overdue accounts are worked through. With better visibility across active cases, finance teams are able to manage cash flow more reliably without compromising client relationships.
For further guidance on how we could support your business, contact us on 020 8080 2888 or fill out our online contact form.
