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Late Payment Of Invoices Is An Ever Increasing Fact

Everyone in business knows that late payment of invoices is an ever increasing fact of commercial life. But a recent survey shows just how big the problem has become. The figures are staggering. Did you know?

• SMEs are owed about £39.4 billion
• Corporates are owed about £6.7 billion
• 60% of SMEs are experiencing late payments
• 1 in 4 SMEs say that only a small increase in this burden could send them into bankruptcy

These figures don't take into account the additional costs faced by businesses due to late payment - overdraft fees, admin costs etc.

Late payment has a knock on effect - 25% of businesses are forced to pay their own suppliers late and many businesses are now being forced to rely on bank overdrafts.

The survey concludes that late payments are a major headache and that it is having a "seriously detrimental impact on small firms”. Smaller firms are in effect lending interest free to larger companies!

Those "at the coal face” knew this already. And they know that the stress this causes in a business can spill over into people's personal lives. So what can be done?

How can you help? Some Top Tips to avoid late payments:

1. Use Direct Debits to control cash flow
2. Invoice on time and correctly
3. Credit check all customers
4. Chase for payment immediately the invoice is due

How can we help?

We have a dedicated debt recovery department and can help with anything from pre legal recovery through to court action and enforcement. 85% of debts chased by us pay without the need to issue court action. Involve us early and get the outstanding cash into your business where it belongs.