Don't Let Late Invoice Payments Impede Your Business Growth
New research from commercial credit referencing agency Graydon UK has revealed that out of a sample of 500 small businesses in the UK, 51 per cent found the late payment of invoices a problem revealing that growth and survival prospects were under threat as a result of lack of investment in formal credit management processes and credit control systems.
Forty five per cent of the companies who claimed late invoice payments were an issue, also reported eroded profits as a result, whilst 16 per cent said they had almost been put out business as a result. Proving that it is extremely important for businesses to have a secure, reliable and easy-to-use credit control system.
Additionally, 65 per cent of the the businesses surveyed said that customers extending their payment terms without notice of consultation was also an issue, proving a further need for better ways to manage credit control.
The findings have been highlighted as a serious issue in the House of Commons by the Government's department of Business, Innovation and Skills (BIS), the Institute of Credit Management (ICM) the Association of Certified, Chartered Accountants (ACCA) and Lloyd's TSB Business.
Gordon Skaljak, External Spokesperson for Graydon UK, said: “Companies cannot achieve sustainable growth if they aren't paid on time consistently. This is why having a formal credit management process based on reliable, accurate customer payment behaviour information is essential for businesses that want to transact with confidence and fulfil their sustainable growth potential.”
Companies need to invest in a robust cash flow management process that helps them to tackle the late payment issues and receive the cash from their customers quickly, and cost effectively.
By using the Open Payment System you can monitor and manage payment schedules effectively by creating recurring, and instalment payment schemes for each customer. And with our automated SMS and email reminder features, you can be sure that they won't forget when a payment is due. In addition, payment queries can be handled quickly and electronically – ruling out the opportunity for payment excuses.
Sound like Open Payment System could benefit your business? Find out more by contacting our client services team on info@openpaymentsystem.com today.