It seems that no matter how much of a spotlight we shine on small businesses receiving late payments the light is just not bright enough. In the past we have written multiple articles highlighting this issue and every year the statistics get worse and worse.
If research from Asset Based Finance Association (ABFA) is to be believed, UK businesses with a turnover under £1 million are now waiting an average of 72 days for payment of invoices, a day more than it was last year.
What makes vendors and clients feel that they don’t need to pay a small businesses in the required time period for services rendered? Is it that because you are a small business they feel they don’t have anything to fear? Or is that since they have been getting away with it for so long it’s just become the norm?
Unfortunately, these questions will probably never totally be answered; however, there may be areas of your business that with some minor tweaking may get you a speedier turnaround on payments.
Many late payments stem directly from improper or ambiguous invoicing. If you feel you may be in this situation you need to get an invoicing system in place. Here is a collection of invoicing tips to help you speed up the process of getting paid.
As mentioned earlier we have provided copious amounts of information regarding late payments which can be found in the links below.
- How to handle late payments?
- Are late payments eating into small business profitability? Yes, says latest data from FSB
- How to deal with the pain of late payments: Tips for small businesses
We understand that as a small business you already experience your fair share of obstacles and constraints. Getting paid for services and goods that you have provided should not be one of them. If even one piece of information benefits you and your business then our time will have been well spent. Please contact us if you require any further information.