Cash is still king!

As reported by Credit-Connect new research has found that over half of invoices are paid late with a third of those remaining unpaid after more than 90 days meaning companies are presently suffering the longest payment delays since the pandemic. As a consequence of which the Centre for Economics and Business Research (CEBR) understands that now one in six business to business suppliers are offering customers over two months to settle their invoices with more than eight in ten (84%) suppliers stating they have to adjust payment terms for their business customers, being nearly twice the rate of four years ago.

Additional research by Aldermore’s SME Growth Index shows that over 3.6 million (72%) small and medium-sized enterprises (SMEs) have some form of outstanding late payment from customers, leaving them on average £96,772.00 out of pocket, an increase of 41% since December 2023. The increase in late payments has a domino effect on SMEs with over a third (38%) of businesses having difficulties paying their own essential business costs and 36% are struggling to pay their own suppliers on time as a result of cash flow issues. In turn almost a quarter (24%) of businesses feel they are losing their competitive advantage as they’re unable to fund strategic business decisions.

Late payment of invoices continues to present huge challenges for not only SMEs but all businesses having to expend excessive time and manpower pursuing outstanding debts, due and payable.

Our Debt Recovery team are experts in their field and have now been ranked as recommended specialists within tier one of the Legal 500 directory for a fifth consecutive year. We assist numerous companies across varying sectors in recovering monies owed to them and have heard all the excuses for non-payment. We are well versed in negotiating a commercial settlement and if need be, presenting County Court proceedings or if appropriate bankruptcy and winding-up petitions. We understand our clients’ businesses and known for our ability to provide a commercially orientated fast, efficient, and effective service enabling our clients to focus on the running of their own business rather than spending excessive time and money pursuing outstanding debts.

By way of our continuing efforts to assist we have developed in-house our Debt Recovery Portal enabling our clients to instruct us online, at any time of their choosing, to produce the initial letter of demand, sent by return. The effect of the Devonshires letterhead is in the vast majority of occasions immediate payment or at the very least the debtor’s engagement as to settlement. Frankly who wouldn’t respond to a city law firm making clear legal proceedings are likely to be presented in the continued absence of due payment?