At Commercial Domestic Investigations we know how late payment can have an instant negative impact on an SME’s cash flow, and we are always encouraging companies to find solutions and tackle the problem.
In the ever changing world of business, even the smallest distractions can have more long term effects on the growth of your business. Shocking reports have revealed that small businesses lose a staggering 14 days a year chasing late payment. This is precious time that can be better spent on your businesses – building customer relationships, winning new business and other factors that will affect your overall business growth.
Running out of time
Many SMEs spend a significant amount of their own time chasing late payments, resulting in the productivity of the business taking a major hit. Understandably, SMEs don’t want late payments to result in no payment at all. Around 20 per cent of credit professionals said it is too much effort for them to follow up with their suppliers, while 18 per cent said they simply don’t have time for the process of recovering late payments.
The time period in between is dealt with in different ways by different businesses. A business that wants to maintain a strong relationship with the customer in question may react more leniently to a late payment, but if the debt continues to be ignored this can backfire.
Some SMEs don’t want to chase late payment simply because they feel it will damage the reputation of their company. Lovett’s, a Surrey-based commercial litigation firm revealed that 58 per cent of the 149 credit professionals that they interviewed said that fear of a loss of reputation would stop them from acting on late payments.
Stress = reduced productivity
The impact that late payment has can easily become evident in the workplace. Stressful internal meetings that have to take place due to unpaid invoices start to become more and more frequent as the company begins to suffer. When suppliers fail to pay, business leaders are often left with no choice but to put in the shortfall from their own pocket, or are simply prevented from purchasing stock – immediately affecting productivity levels.
A one-off late payment can appear small and even insignificant at first, but as more and more suppliers fail to pay on time these can build up and sometimes escalate out of control.
Considering the services of a debt collection company may be the answer to relieve the stress of late payment and allow your company to spend time on growing your business. We know your time is precious and would be better spent on growing your SME.
Contact us for an informal chat about your unpaid invoice and how we can help you. Our team have the experience and knowledge to help your company recover money owed. Working with our debt collection team gives business owners the peace of mind needed to move forward and get past negative cash flow.
About Commercial Domestic Investigations
Commercial Domestic Investigations are regarded within the debt collection and credit control industry as one of the best credit management companies in the UK. Established in 1988 to support and service all sizes of companies in the field of Credit Management.
Commercial Domestic Investigations have recently featured in the press in The Guardian. To keep up to date with the latest debt collection news make sure to follow Commercial Domestic Investigations on twitter, LinkedIn and Google+.
We now boast a national client base in excess of 30,000 companies. Commercial Domestic Investigations has grown by listening to clients’ requirements and adapting our services to meet all companies’ needs from Sole Traders, SMES, Ltd and Plus. Please contact us on 08444 159200 for more information.