Get your business working smarter at the start of this financial year by making sure late payment does not affect your bottom line.
Late payment of business debts can have an adverse effect on companies and with almost 115,000 businesses waiting up to 57 days for payment it can mean the difference between insolvency, or a secure business future.
The data, gathered from more than one million debtor day reports was done by a leading NW insolvency firm and revealed that of 1,000 businesses entering insolvency during 2018, 34% had debtor days in excess of 57 days and 15% for longer than 86 days.
How to Recover Commercial Debt
“What we see here is a prime example of how having late payment can impact your business,” said solicitor Asa Cocker, who works with local companies every day specialising in commercial debt recovery. “For some clients, late payment really impinges on how they work, businesses cash flow is affected and it has a knock-on effect along the supply chain.”
“Our debt recovery team uses a proven combination of letters, telephone calls, court proceedings and common sense to recover payment from debtors. Sometimes a simple ‘letter before action’ prompts payment, but if the legal route is going to be longer we can help in every step,” he added.
Bad debts have also hit other industries such as telecommunication & information, media companies, technology, travel & tourism and the report states that general retail is often kept waiting between 41 and 43 days for payment.
The data also revealed that the support services sector is most likely to be hit hard by late payments, with almost 35,000 businesses reporting debtor days increasing in the past year and 260 actually went out of business during 2018.
“Late payment has become part of the working culture for many businesses and with uncertainty on the horizon as Brexit bites businesses for them to have a future they need to be resilient and challenge this late payment culture,” said Asa.
Please note that the information and opinions contained in this article are not intended to be comprehensive, nor to provide legal advice. No responsibility for its accuracy or correctness is assumed by Pearson Solicitors and Financial Advisers Ltd or any of its members or employees. Professional legal advice should be obtained before taking, or refraining from taking, any action as a result of this article.
How can we help you? Call us today on 0161 785 3500 to get the specialist help you need.
you agreed to accept cookies from this website - thank you.
you disabled cookies on this website - some functions will not operate as intended.
We use a range of cookies to improve your experience of our site.
Find out more.