The Business Problem
One of the biggest reasons for business failure is insufficient working capital. Managing cash flow effectively by collecting payment for your goods and services on time is one of the perennial problems in business. It’s an issue which affects most organisations and over the past few years in the UK, the problem has continued to grow. Based on recent data, on average 48.7%1 of B2B invoices in the UK were not paid by the due date – the highest rate in Western Europe.
Every business needs a strategy to ensure that customers are contacted promptly and arrangements are made for debts to be paid as soon as possible and within the agreed payment terms. Most often, it’s not a deliberate ploy to pay late, it’s more likely due to inefficient payment systems or forgetfulness. Trying to keep a handle on all your open receivables can be challenging and the ability to adapt strategies for different types of customer is also key to ensuring that time and effort is focused in the right areas and not unnecessarily wasted.