A great analysis that shows starkly the challenge many SME’s face when dealing with unpaid invoices, trying to find the answer between not wanting to upset client/customer relationships but needing the cashflow and finding a cost and time efficient way of dealing with it. At Ascent we have a great tool for all SME’s - www.debtguard.co.uk our online only self serve tool where you can send a solicitors letter for just £2.00 that you’ll find works more often than not. In terms of when is the right time to use it - we’d recommend escalating an unpaid invoice between day 45 and day 60 past the invoice due date.
More than two in five small businesses that were struggling to survive said they were unable to pay their suppliers on time (43%). A further 29% said that late payment issues was having an adverse a knock-on affect on their long-term relationships with suppliers and customers. Chasing and covering late payments was also taking up unnecessary time and money. More than a quarter of respondents (26%) said they had wasted time and legal fees chasing up late payments, diverting significant time from running their business.
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