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How long do you have to wait to receive payment for invoices?
I’m a member of Birmingham Chamber of Commerce, and I receive their daily e-news. Today (21st November 2011) I noticed an interesting article from RSM Tenon, detailing how long, small and medium sized businesses in the West Midlands have to wait to receive payment for invoices. Their researched showed that 61% of the regions SME’s have to wait between 30-60 days to get invoices paid, up by 8% from the previous 6 months. Only 13% received payment within the agreed 30 day payment period, down by 26% from January 2011. It is unacceptable that 82% of businesses have to wait beyond the contractual payment period.
It is important that late payments are dealt with quickly, and therefore a robust credit control system be maintained. It doesn’t have to be anything complicated, just a standard approach that you and your customers understand. It can be very difficult to ask customers for payment, but it can even more difficult to lose a reputation for being a soft touch when it comes to settling an invoice.
At Mercian Law we suggest that your Terms of business are reviewed to ensure you have adequate protection in the event of late payment. That you review your existing credit control procedures, or draft one if you currently don’t have one. Or, for a fixed fee we can assist with the drafting if you prefer.
Case Outcome
Our client was owed £4000, we served a Late Payment Interest Notice for £10 + VAT, the debtors guarantor paid in full within 14 days.
Our client was owed £900, for £10 + VAT we sent a Late Payment Interest Notice. Full payment within 3 weeks.
Quotation
Laws are felt only when the individual comes into conflict with them – Suzanne La Follette – Feminist & Politician
Law is born from the despair of human nature
Jose Ortega Y Gasset, 19th Century Spanish Philosopher
Court action should be the last resort
Case Outcome
Our client was owed £900, for £10 + VAT for a Late Payment Interest Notice was sent to the debtor. Full Payment received within 21 days.
Case Outcome
Mercian Law was instructed to serve a Late Payment Interest Notice for a £900 debt, for a fee of £10 + VAT. Debtor paid in full in 14 days.
Case Outcome
Our client was owed £5500. We sent Late Payment Interest Notices costing £20 +VAT. Client agreed £4000 in full and final settlement (73%).
Case Outcome
Our client has settled an £18,000 claim for commercial rent arrears after paying just £10+ VAT to Mercian Law for a pre litigation letter!
The Debt Recovery Expert 