Late Payment Issues Continue
Figures published by Experian from their Late Payment Index show that businesses were still late in paying their bills. During the last quarter of 2010 and the first quarter of 2011 the average delay in payment was 25.2 days. Larger businesses; those with over 100 employees, showed the worst figures with payments being 34 days late but those with under 100 employee companies were still over 20 days late in making payments.
Experian do point out that the bad weather at the turn of the year will have had an impact. Notwithstanding that, the message remains that companies should maintain robust credit control procedures. It is an old adage that recent debts are the easiest to collect and businesses should not allow too much time for payment before debt issues become a real problem.
The statistics do not themselves provide any reason for the drop. Court action can be a time consuming and expensive process and it may be in times of recession that creditors are pursuing other methods of recovery. Court action can still be a cost effective method of recovery and AMA’s pre-court investigative processes can help to avoid throwing good money after bad. If you want further information and how we can help please contact us using link below.