Just 52% of invoices sent during 2017 were paid on time or within three days of payment deadlines, according to research by accountancy software firm FreeAgent.
But as Claire Sandbrook weighs in on the conversation, we wonder, will appointing a board member make a measurable difference to the little guy?
Claire believes, late payment needs to be tackled, in her personal view, by the entire leadership team of a business. In our team we make the credit control function part of the conversation with existing customers. We soon find out what’s happening and customers appreciate the heads up on sorting out invoices and getting them paid.
Small business lifeline? Large companies to appoint late-payment tsar
The government says that every large company must make a board member responsible for late payments to small business, and they need to report on progress in annual reports.
Giving his Spring Statement in the House of Commons, Chancellor Philip Hammond announced that the business secretary has been tasked to see the move through. The Chancellor said that a non-executive director should be responsible for the supply chain through the audit committee of every large business, and report back through the annual report on progress.
Nearly half of Britain’s micro businesses suffer from chronic late payments from clients. Just 52 per cent of invoices sent during 2017 were paid on time or within three days of payment deadlines, according to research by accountancy software firm FreeAgent.
Over 50,000 businesses go bust each year because of late payment, which depresses the economy by about £2.5 billion. And there are around £500 billion worth of unpaid invoices currently in the UK. [READ MORE]
Shergroup offers small businesses a lifeline…that isn’t dependant on waiting for big businesses to get their act together!
So what can be done at ground-level to reduce late payments, and the risk of unpaid invoices.
- Get your Terms & Conditions right in the first instance:
Submit your current Terms and Conditions for a FREE review to ensure you are covered and most importantly, in the event that you need to take further action, you’re covered and the costs of collection and enforcement are borne by the debtor, and not you!
- Put a comprehensive Onboarding Process in place which includes a Credit Check on your Customers
All too often, we’re so pleased to be taking on a new client, we don’t do enough due diligence to ensure we are offering the right levels of credit to stay protected.
Company Credit Check Submission
- Chase up late payments quickly
We offer a full collections service on a No Win No Fee basis
Call us today to discuss your requirements 0845 890 9200
- Reduce credit terms for businesses that keep paying late
Manage the credit limits you make available to your clients by using our Credit Monitoring Service.
- Build strong relationships with your customers, so you improve the likelihood of getting paid first!
Have you been a Victim of Unpaid Invoices?
Join our LinkedIn Group ‘Unpaid Anonymous’ and come share your war stories with us!
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‘HOPE’ is NOT a viable strategy for keeping your children safe at school!
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