These strategies help by reducing the cash flow gap between providing your services and getting paid for it. However, there are numerous ways you can protect your cash flow to limit the damage to your business.Īccording to the research, 61% of businesses said they have adjusted credit terms for customers, while 53% have offered discounts to encourage early payment. Unfortunately, even with the most rigorous credit control strategy in place, there is always a risk of late or non-payment.
#Write off unpaid invoices download
#Write off unpaid invoices how to
How to protect your business from bad debt Read more about the ways business owners and their staff are impacted when customers don’t pay on time here. This strain on resource and cash flow creates a negative impact which, in turn, spreads far beyond company finances. Whilst writing off bad debt as uncollectible has an obvious impact on business finances, the true cost of non-payment often extends much further than that.Īccording to the research, half of businesses have increased the time, cost and resource to chase overdue invoices as a result of late payment.Īs well as this, more than a quarter (28%) have had to pursue additional financing, while 26% have subsequently had to delay paying their own suppliers. The research from Atradius also revealed that a further 44% of the total value of UK B2B sales were reported overdue in the last year, with many businesses expecting this problem to get worse.Īccording to the study, 39% of UK businesses expect it to take longer to collect payment next year, with 39% anticipating an increase in the average days sales outstanding (DSO). With businesses writing off £8 in every £100 as uncollectible due to non-payment, we look at the cost of bad debt and what you can do to avoid it.īusinesses wrote off a shocking £8 in every £100 billed in the last year as the challenge of late payment shows no signs of subsiding. Bad debt laid bare: Businesses write off £8 in every £100
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