Are you sitting on invoices that should have been paid? Perhaps your in-house resources are struggling to chase them all? Well, you’re not the only one…
In recent years, the statistics for outstanding commercial debts stood at record figures, with SMEs alone being owed in the region of £35bn.
Although many large firms have some financial reserves to cope with late invoices, it doesn’t make good business sense to have admin and finance teams tied-up with chasing bad or late debts.
The Federation of Small Business report that the average delay can be up to 20 days after agreed payment terms, putting the squeeze on a company’s cash flow, impacting operating costs including wages, re-investment and ultimately the bottom line profit.
Even the Government has admitted that late payment legislation “hasn’t worked” and European directives that make the standard invoice payment term of 30 days compulsory for all businesses are simply flouted unless planned and effective credit control systems are in place.