Today, data trends extracted using the Xero platform indicates that it is taking longer and longer for small businesses to have their invoices paid.
Late invoice payments are already a huge problem for small business owners. 87% of invoices issued by small businesses in New Zealand are overdue. And this seems to be a mounting issue. In the past year, the number of invoices which were more than a month overdue grew from 24% to 40%.
So what are some things you can do about it?
- ask customers to make deposit payments at the time of order
- focus on repeat business
- change the terms of trade for slow paying customers
- help customers pay on time by offering discounts for quick payment
- invoice your customers as soon as the job is done
If your current practices in terms of credit control and debt collection are not working for you then why not call Insight CA Limited to discuss how you might better manager the task of debt collection.