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Debt collection experts warn UK businesses to protect cashflow in 2026

As British businesses prepare for 2026, Federal Management urged UK firms to strengthen cashflow controls, with Marc Curtis-Smith warning, `Our advice to any UK business owner in 2026 is simple: do not be complacent about your cashflow.`
Rising operational costs and a tightening commercial climate squeeze profit margins, while the culture of delayed settlements creates a domino effect that can destabilise supply chains.
Federal Management advises that the first line of defence is internal credit-control processes, including credit checks, written payment terms, automated reminders, and consistent follow-up, while specialist recovery and outsourcing to debt collection agencies should be considered when invoices become significantly overdue.
Poor cashflow can prevent firms from paying staff, suppliers and HMRC on time, damaging reputation and creditworthiness, while chasing unpaid invoices drains SMEs' productivity and risks insolvency.
As firms look to the remainder of 2026, Federal Management urges UK firms to shift from reactive to proactive financial defence and to weigh using debt collection agencies as strategic partners carefully.

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