
A typical business has an excruciating wait of 68 days for their clients to pay. That’s a worrying rise of ten days compared to two years ago.
Clearly, the traditional ways of managing late payments aren’t working. But why?The ‘solutions’ that don’t solve
Credit controllers have long been responsible for chasing invoices and managing late payers. They’re facing strain in the current recession. The problem is that they’re expensive; the average controller demands £33k in salary alone. So, if you can’t afford this cost, you’re forced to chase customers yourself. That’s a distraction from growing your business. When the recession of the 1980s first made credit control challenging, invoice financing, (“factoring” or “discounting”), became a popular way to get money in quicker.A genuine, long-term solution
What you need is to eliminate the problem itself, once and for all. The trick to success is finding a solution that saves both you and your customers time. Many businesses are discovering that switching payment methods can do just that. Both Direct Debit and credit cards guarantee funds will come in on time, and in full. Credit cards work for both parties for large, one-off payments. They let customers retain the credit they want, whilst you are paid on time. They’re brilliant (if expensive) for one-off payments, though not so hot for forgetful customers making regular payments.Share this story