Should I Keep Chasing Payments?

New research has shown that chasing payments are a big problem for small businesses within the UK. Three out of every five (60%) invoices issued by UK-based small businesses are not paid on time.

What is even more worrying is that, on average, small businesses are forced to devote 10% (an hour) of their working day dealing with unpaid invoices.

We believe that this needs to change so that small business owners don’t spend so many hours chasing debt and worrying about cash flow. Small businesses make up 99.8% of the British economy so this issue needs to be sorted quickly.

Chasing payments from your customers

Chasing payments is one of the services that we offer our clients in order to assist with small business owner’s cashflow. It is essential that small businesses maintain a steady cash flow as this allows them to meet regular operating costs such as paying staff wages and buying supplies. We want our clients’ businesses to grow and when they have to spend time on chasing payments this limits growth and at worse it can force them to cease trading in some circumstances.

What needs to be in place?

The key to ensuring customers pay invoices on time is having the right policies and procedures in place for debt collection. You should never try to cut corners when chasing customers for payment. Some business owners feel that chasing customers for payment is likely to upset them and either fail to do it at all or don’t have a proper strategy in place.

The older a debt becomes, the harder it is to collect. For a small business with a handful of clients, setting up a simple spreadsheet may be enough to keep up with unpaid invoices. However, as the company grows, you’ll find it is much easier to use an invoice tracker system. This will collate all the invoice information in one place and provide alerts when payments are due.

We are experts at implementing the software and giving you advice that will help your business outperform your competitors.

Get in touch if you would like to speak to us about how we can start chasing payments on your behalf and help you to grow your business. Please call 01789 414433 or email samantha@cloudbkwarwick.co.uk.

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