More than 90% of businesses which operate on credit have dealt with late payments in the last 12 months. Foreign or domestic transactions don’t matter, neither does the industry, although some are statistically more likely to pay late than others.
Out of all the possible reasons for payment delay, one is by far the most frequently cited. The number one winner by far in the competition of reasons for account receivables invoice delay is:
Knowing is half the battle, right? Now that you know, taking action is much easier. Your accounting software should give you all the important info on what people owe you, how many days they have left to pay and how late they are. Credit scoring is a simple way to get an immediate visual indication of which of your clients are stable and which might have cash flow problems. Invoice automation software that allows you to send automated reminders will push your bill higher on your client’s priority list and your team can easily keep tabs on who is getting exceedingly overdue.
Since this reason for tardiness is one of the most difficult to solve, it may be time to focus on your other clients while these companies get things together. Using invoicing software to make sure your invoices get delivered to the correct person every time or having a payment platform with several different payment options can help alleviate some of the frustration with companies that would happily pay you on time without the glitches.