Unpaid invoices: are they affecting your business?

Alan in Unpaid invoices | No Comments

Unpaid invoices have been always been a problem for businesses, but ever more so in the current financial climate.

With banks lending less money many businesses are finding it difficult to get additional lending or extensions to their overdrafts. Many are being pressured by their bank to reduce current overdrafts. These businesses are pushed to try to extend their payment terms without advising their supplier which leads to slower payments and unpaid invoices.

It’s a fact that most businesses will suffer unpaid invoices which can lead to bad debts. Historically SME’s have written off annually £3,500 in unpaid invoices and from our experience this national average figure is growing.

SME’s are often at the end of the food chain and this is particularly apparent in the construction industry where so many of the sub contractors are left with unpaid invoices when the main contractor suffers financial problems. This problem cascades down the chain from the various specialist sub contractors to the individual sole trader contracts. So the unpaid invoices becomes a fact of life for each these businesses.

We are finding these unpaid invoice problems more and more in other areas such food supply and retail supply.

Businesses often become emotionally involved in the chasing of unpaid invoices, feeling let down by their clients who don’t pay on agreed terms but still expect them to perform.

If you have unpaid invoices – don’t get emotionally involved, get Cashflow Protector.