SMEs take too long to chase debt says study

Small and medium sized businesses are taking too long to chase outstanding invoice payments from their customers according to a new study by FreeAgent.

Of the 500 people who responded to the poll, 19 per cent said they would wait 1-2 weeks after an invoice payment was due before chasing the client, while 23 per cent say they wait 2 weeks to a month. Around 18 per cent wait 1 to 2 months before trying to recover client debt, and 4 per cent wait 2 to 3 months before contacting a client to collect a debt. Astonishingly, 4 per cent of respondents said they never chase up an outstanding invoice.

Timely payments from customers are essential for SMEs to manage and maintain a healthy cashflow, and a failure to respond to overdue invoices can quickly affect a company's ability to work at full capacity.

For information about a solicitor debt recovery service in Northern Ireland contact Wilson Nesbitt in Belfast by calling 0800 840 9291.