It’s the middle of the month and you’re still waiting on a payment from last month. You keep checking your bank account, but it still hasn’t come in. You start to get worried- what if this is going to be another month where you don’t get paid on time? This can be a very stressful experience, especially if you are already struggling to make your business ends meet.
Thankfully, there are methods and support you can implement to help you reclaim money due.
What Are Late Payments?
A late payment is defined as a debt that has not been paid within the agreed-upon timeframe. This can be for any type of debt, including credit cards, loans, rent, goods, services and more.
Late payments can impact businesses in a number of ways. Not only can it lead to missed opportunities and late fees, but it can also have a significant impact on your cash flow.
In addition, more and more businesses are experiencing the implications of overdue payments due to the impact of inflation and the pandemic.
A survey from Juno found that the late payment crisis is having a negative impact on the mental health of small business owners with 63% stressed, anxious and/or depressed as a result of cash flow issues caused by late payments.
Another fifth say they are on the brink of closure and 1 in 10 are thinking of making or have made redundancies.
In many cases, perfectly viable and successful firms are put at risk by their customer’s inability to pay on time. To make matters worse, business owners are put in the stressful position of chasing late payments that should have been paid on time; which can be a frustrating and unpleasant process.
Here are some methods to help you get paid faster and alleviate some of the stress caused by late payment:
There are a number of things you can do to try and reduce the chances of late payments. Or at least make it easier to manage if they do happen.
-Start by being proactive and communicating with your customers from the outset. Make sure you’re clear about when payment is due and what the consequences will be if they don’t pay on time.
-Consider using a debt collection agency. This can be a good way to get payments without having to deal with the stress and anxiety of chasing them yourself.
-Keep track of your cash flow so you know exactly when payments are due and can chase them up as soon as they’re late.
-Use tools to help you manage your invoices and payments. This can make it easier to keep track of who owes you what, and when they’re due.
-Stay organized and have a clear system for tracking debtors, payments and overdue invoices. This will make it much easier to keep on top of everything.
-Make sure you have a good credit rating. This will make it easier to get loans and other forms of debt should you need them in the future.
Discover our 3 Top Tips For Chasing Overdue Invoices
Chase Overdue Payments With The Help Of My Debt Recovery
If you’re experiencing problems with late payments, don’t struggle alone. Chasing late-paying customers can take a huge amount of time and resource away from your business.
By engaging with My Debt Recovery, we can take the stress away. Allowing you to refocus your attention back on what you do best; growing your business.
Ignored invoices won’t pay themselves! It is time to take action and get your debtors to pay up. Drop us a line and we can help you get paid!