Small business debt

Debt Management: What Are Your Options?

Debt Management: What Are Your Options?

For many businesses, dealing with late or non-paying customers is just part of the course. However, when businesses are finding their feet, or growing quickly, the time and effort required to chase payments can be extremely frustrating and costly. What are the warning signs? To tackle the problem of bad debt, businesses need to stay alert and spot signs that a customer contract could be becoming a problem. If a key customer normally pays its invoices on time after 60 or 90 days but payments have recently started to slip – this could be a sign that they are experiencing cash-flow difficulties. Another indicator could be if the customer requests a breakdown of the invoice or a purchase order number. While such requests may of course be entirely justified they could also be symptomatic of fin... »

40% of Small Businesses Don’t Know How Much Money They’re Owed

40% of Small Businesses Don’t Know How Much Money They’re Owed

40% of UK small businesses who had to write off debts in the last financial year, don’t actually know how much money they’re owed from debtors, according to a report from Direct Line for Business. The survey of over 700 enterprise owners revealed that 82% of small firms still have balances outstanding from their debtors, with the average business being estimated to be owed a total of £62,957. UK businesses were forced to write off a combined £5.8bn last year, which equated to more than £21,000 a day. Suppliers becoming insolvent and unable to pay what they owed (29%) was the main factor for writing off debts, followed by those that thought suppliers didn’t have sufficient funds to pay their debt (17%), not having the time to chase debts and not having the funds to chase debts (both 11%). N... »

Forgetful Customers Risk Putting Businesses in Debt

Forgetful Customers Risk Putting Businesses in Debt

Nearly half of all debts owed to UK businesses are as a result of forgotten or late payments, rather than customers not having the means to pay, according to a report by Echo Managed Services. The survey of 1,500 households revealed the nation’s spread of debt isn’t just restricted to struggling individuals, with some of the nation’s more affluent households guilty of late payments or ‘forgetfulness’ to pay their bills on time. Interestingly, forgetting to pay was the biggest issue among those in higher income brackets. Almost half of people that have missed a payment in the £40,000+ salary bracket said that they had simply forgotten to to pay – three in five individuals also admitted to having missed a payment to an everyday service provider at some point. More than four in 10 respo... »