Majority of firms are paid late

With so many businesses facing financial issues, new data has revealed that, worryingly, 87% of businesses are typically paid late.

The 2022 late payments report, produced by Chaser, gathered data from over 400 firms around the world and found that late payments are a significant challenge for businesses globally.

Particularly for businesses in the marketing, advertising and construction industries, who reported that 100% of their invoices are paid late.

Interestingly, UK businesses (along with China, New Zealand, Pakistan and South Africa) are among the fastest to be paid on a global level – typically less than a week after the due date.

Firms in Italy and the Netherlands wait the longest for invoice payments from their customers – typically 31-45 days after the due date.

According to Chaser, there are a number of processes and methods that have been proven to reduce late payments:

• Businesses using accounts receivables software are 3 times more likely to get an invoice paid before the due date than those not using software.
• Businesses that follow up with 90% or more of their invoices are the most likely to get paid within a week of their invoice due date.
• Using a combination of text and email reminders increases a business’s chance of getting paid within a week of the invoice due date by 56%.

To find out more about contracting please contact Jaime on 01442 795 100 or email jaime.thorpe@dolanaccountancy.com.