![]() Legal proceedings - Taking your customer to court to enforce payment. Sending debt collectors - Engaging a third-party to collect the debt on your behalf.Ĭharging late payment penalty fees or interest - Leveraging applicable laws to charge additional fees to late-paying customers. Phone calls - A call to the accounts payable team, when emails are replied to slowly or missed.įormal letters - To escalate a polite request for payment into something more serious. Given late payment is evidently so ubiquitous, what can companies do to encourage sluggish payers to hand over the money? There are a number of actions that can be taken, in order of severity:Įmail chasing - Sending a friendly reminder to jog the accounts department into action. ![]() Supermarket and retail firms are 14 days late paying on average, while wholesalers and food and beverage businesses pay up 13 days late on average. Tech companies are an average of 19 days late, compared with the 18 days extra both financial services and energy businesses take to pay their debts.Ĭonstruction businesses are an average of 17 days late paying invoices. Media firms are an average of 21 days overdue paying invoices, while management consultants take 20 days more than requested to pay up. The utilities industry takes an average of 23 days extra to settle its bills. And there’s evidence that late payments are on the increase, with some industries being notably worse than others.īusinesses operating in the transport sector are the worst offenders, being an average of 25 days late paying, MarketInvoice data shows. Some even go under due to unpaid invoices. ![]() They’re also the most likely to be damaged by unpaid bills, with cash flow and productivity suffering. Two-thirds of invoices in the UK are paid late, according to research by MarketInvoice, with SMEs particularly vulnerable. Prevalence of late paymentīusinesses live in dread of late payment and with good reason. For example, if an invoice is issued with 30 day payment terms and the total amount hasn't been paid after the 30th day, the invoice is considered to be 'overdue', 'unpaid', or 'late'. Overdue invoices are invoices which have not been paid in full by the time the agreed payment terms have elapsed.
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