Debt Collection Tips: Getting Paid on Time

Late payment is one of the most significant issues facing businesses across the UK. In fact, some estimates suggest late payment sums now total over £23 billion.

When a client or customer does not pay on time, this can create many problems, with one of the most significant being the impact on cash flow. The art of managing cash flow is essential to business success, particularly for small businesses with limited resources. Time spent worrying about cash flow is time that you could have spent on securing more business.

Payment systems in 2022 rely on invoices, which give a payment time of between 30 and 90 days according to circumstances. When the payment period is up, an invoicing system will typically send a reminder to the customer, but they may still refuse to pay or attempt to ignore the reminder.

Fortunately, there are steps that you can take to reduce the chances of ending up in this situation.

Up Front Payment

Getting an upfront payment for your goods or services is the ideal solution, and effectively rules out late payment issues. There may be many reasons why upfront payment is not possible, depending on your industry or client base, but when possible, it should be your default approach.

Effective Payment Methods

Digital technology has led to the development of many different payment options and one way to reduce the risk of late payments is to make sure that your business accepts transactions through as many different methods as possible. Giving your customers more ways to pay may make it easier for them to pay on time and will also make it harder for them to avoid paying if they are able to.

Agree Terms at the Start

Another important tip is to discuss and agree terms of payment before you provide them with your service. Terms and conditions are commonplace with any transaction, and by laying out all of the payment conditions in advance, you will reduce the risk of confusion, and will have documentary confirmation of the payment terms that your customer signed up to.

Invoice on Time

This may seem like an obvious step, but it is surprising how often companies take their eye off the ball when it comes to invoicing. Late or inconsistent invoicing procedures can encourage customers to think you are less serious about getting paid on time, while prompt invoicing, along with regular reminders will have the opposite effect.

Call in the Debt Collection Experts

Sometimes, despite all of your best efforts, customers still fail to pay on time. In this case, it can often be more productive to speak to a specialist debt collection agent.

Our debt recovery agents are skilled at recovering debt in all circumstances, and whether you have an international debt collection issue or a local recovery problem, our professional approach will ensure that your debts are paid while maintaining those crucial customer relationships.