How B2C Businesses Can Recover More Debt - Even Without Late Payment Interest
Late payments are on the decline but SMEs owed an average of £80k
2
min read
Results from Q4 show that there was a decline in the number of UK businesses being paid late although chasing overdue invoices is still a challenge for SMEs - with the average amount owed to an SME at any one time averaging £80,000.
As any Financial Director knows, late payment has a hugely damaging affect on your business. If you are not paid on time, you can’t pay your suppliers on time and this is when problems can escalate. A vulnerable business could find itself unable to tender for new business or even pay their staff. Too many pressures on cash flow can result in a business beginning to unravel. Here are some guidelines to help protect your business:
- A Business Insight Portal is an extremely cost-effective way to understand your customers; giving you up to date information relating to creditor days (average time a company takes to pay their invoices) and a financial health rating which will help you understand if your customer has the funds to pay. Building this process into your credit control will avoid any nasty surprises further down the line.
- Implement account monitoring alerts on your customers to give you a heads up when there have been changes to their creditor days and financial health – this means you’ll be able to respond by setting more realistic payment terms for them. If a company becomes insolvent there is very little that can be done in terms of collecting overdue payments, so by setting up alerts, you’ll be one of the first to know if problems lie ahead.
- Speak to a reputable debt recovery firm who specialise in commercial debt. Controlaccount Plc has been providing B2B debt recovery solutions to global brand names and SMEs for over 30 years. For a no obligation chat, click here.
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