It is estimated that up to 85% of small businesses have problems with collecting late payment from contractors.
Late payments can have drastic consequences for small firms because it often results in them being unable to pay their suppliers or their employees. As a consequence of this, they might be unable to continue with their usual business.
UK Prime Minister David Cameron has pledged to launch a consultation to see what can be done about speeding up the time it takes for large companies to pay their smaller suppliers because – at the moment – although there is a government scheme in place already, participation is voluntary and not legally binding.
In the meantime – with no guarantee that any consultation will make meaningful changes to the status quo – what can be done by your business to ensure that you are paid in a timely fashion?
The main thing you can do on your end is to improve your invoicing process. Switching to electronic invoicing can be a lifesaver for many businesses – especially if they choose a solution which is powered on cloud technology. Electronic invoices reduce the likelihood of making errors and also make any corrections a lot easier.
You’ll also have a full record of all the invoices that you’ve sent out and this should make it simpler to chase payment if you need to.
WinWeb’s Invoicing Software app allows you to do all of this and has countless more great features like adding your own branding to the invoices you send out. If you want to know more, get in touch with us or start using it today – one payment, lifetime access.