Unpaid bills to small firms now stand at £35.3 billion – the highest level in almost five years, according to a new survey by Bacs. The company also found that the average amount owed stood at an eye-watering £45,000, up from £39,000 earlier in the year.
So are small firms just sitting back, letting the payments mount up and not worrying about what’s owed to them? Not a bit. In fact, the amount of admin spent trying to sort the issue has become a problem in itself
New research from RBS Invoice Finance reveals that small businesses spend an average 130 hours each year chasing late payments.
This equates to just over three weeks of work. Based on the average UK wage of around £26,000 per year, then three weeks equals more than £1,500!
What’s more, according to the study, companies also wait 30 days beyond any contractually agreed terms before payment is actually received. So, in our estimation, there’s the added cost for many businesses of bridging that gap with interest on overdrafts or money they could have used for something else.
Clear cannot solve these problems, but we can help reduce the hours (and cost) spent chasing payments. Firstly, with Clear there are fewer hiding places (excuses) for late payers. Notification of your invoice goes direct to their email. Clear tells you when your invoice has been viewed by them. And your payment terms (eg 30 days) and bank details will be marked clearly on your online invoice.
Clear will also chase payments automatically on your behalf if you select this option.
Clear’s templates allow you to create polite-but-firm email reminders if any payment is late. You can be persistent without the stress of having to chase customers yourself. Clear will work silently and efficiently on your behalf. And all for free.