A new platform has been launched that its developers hope will help veterinary practices to “take control” of their finances and recover more of what they are owed.

Debt recovery firm DSL has estimated so-called “bad debts” to practices, which are considered unlikely to be repaid, could now be worth up to half a billion pounds a year.

The company has now launched a new, free VetDebt Recovery Compass to help businesses determine the impact of unpaid bills and which areas to prioritise.

Wider problems

Bosses say the problem can lead to wider financial problems and even have an impact on care availability if it is not addressed.

Chairman Mike Brooks said debt issues were particularly sensitive in the veterinary sphere because of owners’ emotional connection to their pets and acknowledged those issues may have been exacerbated by the ongoing Competition and Markets Authority (CMA) investigation.

But he added: “There’s not enough conversation around debt in veterinary practice.

“There’s a definite stigma around debts, especially bad debt, when really there should be much more communication around it, because it’s far more common than many may think.

“By making this information free and accessible to everyone, we hope to empower veterinary teams to take control of their finances.”

Estimates

The group, which specialises in veterinary debt recovery, estimates that bad debts now account for between 5% and 10% of the sector’s annual turnover.

Based on previously published estimates, it is thought that proportion could equate to a total of between £265 million and £530 million a year.

The platform, which can be accessed via DSL’s website, [insert link – https://www.dsluk.net/] is intended to help practices identify and address debt risks before they become major issues.

Mr Brooks also suggested it could be a starting point for practices who are considering recruiting debt recovery agencies to handle the issue.

The company further warned that practices can lose as much as £130,000 in value for every £10,000 of unpaid fees.