UK Companies Predict Increase in Level of Bad Debt in 2005

UK companies are missing out on billions of pounds worth of lost revenues due to boardroom complacency and unimaginative strategies to tackle customers who don’t pay their bills.

New research from revenue collection experts Talgentra has uncovered some shocking statistics in the utilities, telecoms and finance sectors. Every single one of the 250 companies surveyed by Talgentra expect to see an increase in the number of customers with repayment difficulties over the next 12 months. 87% of respondents expect that the level of consumer bad debt write-off (as a % of their company?s revenue) will increase in 2005.

Chris Buckham, Director of Marketing at Talgentra, said: ?This should be a front page story. Companies are quite literally throwing billions of pounds of revenue down the drain every year. Shareholders everywhere should be outraged and demand immediate action from their boards starting with the release of accurate information about how much effort is going into the collection of overdue revenue. Figures about the levels of debt being written off are simply being buried in annual reports.?

As part of the survey ?Trends in Revenue Management and Collection 2004?, over 250 senior managers responsible for revenue collection were questioned. They represent a cross sample of UK companies operating in the utilities, telecoms and finance sectors. These companies share common ground in that they are owed money by customers for loans and credit cards or they provide services in advance of payment.

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