Let’s say an invoice is created and sent on the 5th March and will fall due on 5th April, as agreed with both parties. The growing number of reasons that this is not paid on time given to SME’s can range from
It may be that a seller only employs an accounts person 1 or 2 days a week. This can lead to further delays with queries not being resolved promptly and, in turn delaying the payment. Or, just the lack of consistent contact with debtors can slow this down too. For some SME’s, who are not at the stage of using a professional bookkeeper or accountant, you are further balancing credit control with sales/marketing and all the other hats an owner/director must wear. This balancing of sales and collections can also be very damaging to future sales relationships.
‘Business Money’ has an interesting article about how SME’s who want to survive should be checking the credit ratings of their customers. We think this is an excellent idea and should be the first step for businesses to take, the second being trade credit insurance and the third ensuring that the policy is well managed. All of these things can be undertaken on your behalf by 64G. Take a look at the article and call us if you want to make any further enquiries.
Our new collection only client who turns over approx. £20mm – we have reduced their outstanding debtor book by a third, within 2 months of 64GLTD handling their credit control. Our costs to them being completely offset by their savings on the discounting fee to their invoice financier. A very happy client!