Micro-firms flouting prompt payment advice
Best practice tips to avoid late payment like taking steps both on the invoice ‘due date’ and before seems to not add up to a significant chunk of micro-businesses, a new study suggests.
In fact, almost a third of some 500 micro-businesses polled by YouGov say they wait for four weeks - or longer - after their payment deadline before chasing an unpaid invoice.
Marginally fewer owner-managers (28%) take the recommended action at just seven days overdue – when they should send a ‘late payment’ reminder letter requesting payment.
“If you don’t follow up with late payers from the moment that their invoice is overdue, they may not see the urgency in paying you,” said FreeAgent, which commissioned the poll.
According to the accounting software firm’s boos Ed Molyneux, unpaid firms who don’t follow up immediately after the ‘due date’ risk waiting for months, “even years,” to get paid.
Evidencing his claim, he pointed to the poll finding that 13% of micro-businesses - equating to one in eight - had to wait for at least a year before a client settled an outstanding invoice.