Despite action from business groups and the government to tackle late payments, it seems that many small and medium enterprises are still struggling to chase up payments that are owed them. A survey suggests that 61% of small businesses have had to deal with customers and clients failing to pay invoices by their due date. Approximately one-fifth of businesses have to wait up to three months for payment, causing significant cashflow problems. Two-fifths of SMEs write off bad debt each year.
Despite the huge costs to businesses associated with late payments, nearly eight in ten businesses fail to have a procedure or designated person to deal with chasing bad debt. Over half of SMEs do not have a formal process for putting pressure on late payments. 70% of SMEs fail to use late payment regulations to charge clients who owe them. The research by credit control firm Satago, suggests that companies take a scattergun approach to escalating late payments – costing them additional time and money.
Chasing payments is a troublesome process for any company, particularly startups. Spending time chasing after money that you should already have been given is a demoralising process.
Associate consultants of Opportunity Marketing needn’t worry about late payments. Opportunity Marketing franchisees benefit from our centralised invoicing and payment chasing processes. If you buy into our franchise, you’ll be able to be your own boss without having to worry about the issues associated with SMEs, such as late payment. This is but one of the many benefits of our marketing franchise. Give us a call if you’re an experienced marketing professional and would like to learn more about our franchise opportunity.