A leading UK Business Debt Recovery firm have revealed the top 10 list of excuses for non payment as reported by their clients.
The New Business Department at Federal Management conducted a survey amongst existing and new clients into the root causes of non payment. The findings were revealed in an article on their website.
The excuses range from the expected to the down right disrespectful. All of them support the belief that the late payment of debt is worsening in the UK as previously reported.
Only last month, a report conducted by Insolvency Trade body R3 advised that 23% of Company insolvencies in the United Kingdom were caused by late or non payment of Business Debts.
The list of excuses will probably not come as a shock to most Business owners who will encounter at least some of them on a regular basis.
Top 10 list of reasons for late/non payment
- The cheque is in the post – A timeless classic.
- Not received any invoices – Another ‘hall of fame’ excuse.
- We originally disputed the invoice – Becoming more common
- Account signatory is absent from work – Sometimes genuine
- They’re not available – The person you need to speak to about payment, never seems to be available
- Waiting to be paid myself – An excuse used usually for sub contractors
- No payment run not till the end of the month – Standard excuse
- Our payment terms are 90 days – Sheer arrogance. Its the suppliers terms that matter
- The invoice has already been paid – Simple smokescreen
- Technical difficulties with accounts system – Increasing in usage as businesses become more reliant on technology
On the releasing of R3’s report, their President Andrew Tate had some sound advice for Companies across the UK, commenting
“On the surface, late payment or the failure of another company can seem like factors outside a Business’s control, but there are plenty of steps a business can take to reduce the risks posed by its supply chain”
With the culture of late payment in the UK becoming ever more present, companies are being urged to take action before their unpaid invoice becomes a statistic.
Source: Original article by Federal Management