6 Reasons for Late Invoice Payments

Late payment is the no. 1 problem for UK SMEs, representing over £50 billion. During the cost of living crisis, it is more important than ever for your invoices to be paid on time.

Here are, in the view of a debt recovery specialist, the top 6 reasons invoices are paid late:

 

1. Terms aren't agreed upfront

It’s a good idea to consult with others in your industry, they have field-tested Terms of Business templates ready to go. They might include:

• Industry Associations
• Chamber of Commerce
• Small Business Associations

 

2. Mistakes are made with the invoice

1 in 3 are unpaid due to errors such as:

• No payment instructions
• Being sent to the wrong person
• Incorrect amounts 

 

3. No rapport is built with the customer

People are more likely to pay those they get along with first. Having close relationships goes a long way to prioritising payments. 

 

4. The customer isn't happy with the service being delivered

A "job well done" means the customer is far more likely to pay. 

 

5. No follow up is conducted

Almost 90% of invoices are paid late, but the vast majority of reasons for this can be solved with a quick email or phone call

 

6. Cash Flow Issues…

 

If your business is suffering from, or concerned about Late Payments please contact me - Direct Route.