Late Invoice Payment – Resolve Late Payment Issues
Late Invoice Payment – Resolve Late Payment Issues
Every business in the UK will face the issue of a non-paying client at one point or another.
Business owners know that some people will go to any length to avoid paying an invoice.
One common way for people to avoid paying fees is to pay late.
Credit control teams and accounts managers spend a great deal of time chasing clients for payment…
…and often the only solution is to instruct a professional collection agency to enforce the debt.
Late invoice payment is very common across any working sector, to the point where it is almost the normal way of doing business.
The best way that you can control debt is to prevent it from occurring in the first place.
Having documents such as contracts and payment terms can help with this.
As well as this, there are ways you can ensure that all clients pay on time.
One such was is with a late invoice payment charge.
Businesses rely on their clients to pay them.
Without this, late payments can put the entire company can at risk.
Federal Management is the UK’s leading commercial debt collection agency.
Since our opening in 2004, we have helped thousands of businesses recover millions owed to them in unpaid debt.
Our debt collection experts have helped us understand what you can do with regards to late invoice payment charges…
…and how this helps with your credit control efforts.
Late Fees on Invoices – Are They a Good Idea?
If you are a business owner, you may already know how disappointing it can be when a client does not pay.
Adding late invoice payment charges are an excellent way to provide an incentive to pay on time.
It’s quite a simple measure, but it has a great effect on your credit control efforts.
It’s easy – if a client does not pay on time, they will need to pay a charge besides what they already owe.
This can be very effective in most cases, and measures such as this are common amongst modern businesses.
The best time in which to discuss this with your client is before you make any agreement.
You can create documents such as contracts or payment terms that include details on any fines or late invoice payment charges.
Before you agree, you must make any late invoice payment charges clear to the client.
It is not appropriate to wait for the client to miss a payment before announcing that you have implemented a late invoice payment policy.
All this will do is alienate the client, and it can even make them hostile.
The client must be aware of and agree to any penalties they could incur if they do not pay on time.
Having them agree to and sign off on this will help if you ever need to the matter to a debt collection agency.
Besides any agreement or contract, all invoices that you issue to a client must provide a due date.
This date must be easy to understand and you should place it in a prominent place on the invoice itself.
This will provide them with a clear message on the due date of the invoice.
Late Invoice Payment – Recovering Unpaid Debt
Adding late charges to your invoices is an excellent measure for reducing the number of payment delays.
Despite this, some clients will ignore it as well as all punitive measures that are in place.
There are several methods by which you can recover funds from clients and enforce the debt.
At this point, you will be reaching the moment where your in-house credit control system has done all it can.
Continuing to pursue the debt yourself will only cost you more time and money.
In the case of a business, time is a key factor.
The more time you spend chasing a debt yourself, the more it will take away from value-based tasks that grow the business.
A specialist debt collection solicitor is one other option, but they are a very expensive choice.
Solicitors charge large amounts for the time that they work on your case.
This inflates the cost of the debt to the point where it may not be viable to recover it anymore.
If this happens, it is better to escalate the matter to a professional debt collection agency sooner rather than later.
A professional debt collection agency will be able to recover all unpaid fees.
As well as this, they will provide a service that meets the highest standard of debt enforcement.
Federal Management, for example, is the only debt collection agency in the UK to be regulated by the Financial Conduct Authority (FCA).
As such, our clients have peace of mind that they are getting the best service available.
Adding late invoice payment charges is a good way to ensure that you get paid on time
Late Invoice Payment – Instructing a Debt Collection Agency
If you have a client that has late payment invoice issues…
…the best option for recovering your money is to instruct a professional debt collection agency.
As well as recovering your money in the quickest manner possible, an agency will also incur the lowest cost.
Business owners should spend some time searching for the best firm to recover their debt.
After all, the company they choose will be acting on behalf of their business.
Nobody wants to have their reputation damaged by a low-quality debt collector, and so only the best will do.
Federal Management has helped thousands of businesses since 2004.
In that time, we have recovered millions in late invoice payment fees.
Our debt collection expertise is second to none, and our professionalism is widely recognised.
The FCA regulate Federal Management and we are also accredited by the Credit Services Association…
…and are members of the UK Debt Collection Bureau.
It is critical for businesses that the relationship between them and the client is solid.
We understand this, and our debt collection agents resolve all cases in an amicable way for all concerned.
This allows companies to capitalise on future business opportunities.
As well as this, our average recovery rate is 90% on all undisputed debts, a leading statistic in the industry.
For help with any late payment invoice matters, speak to one of our friendly debt collection experts now.
We will provide a completely free pre-action assessment of your debt.
This takes everything into account and allows you to make an informed decision on how to progress the collection of the debt.
Late Invoice Payment – Frequently Asked Questions
Do You Just Deal With B2B Debt Collection?
We are the UK’s leading Business Debt Collection specialists but can also help with Personal Debt Recovery
What Is Your Recovery Rate?
We collect as much as 90% on undisputed Business debts.
What Are Your Commission Rates?
Our Commission rates start from as little as 6% upwards dependant on the value, volume and complexity of the debts.
Are You A Professional Company?
Yes, we are a Multi Award Winning FCA Regulated Company that has operated since 2004
Do You Have A Minimum Debt Value You Will Act On?
It depends on the nature of the debt. Normally £500+ but we can usually help or give advice for smaller amounts.
A Foreign Customer Owes Us Money, Can You Help?
Yes, we have a network of trusted, accredited Debt Collection partners around the world and have recovered millions for our clients.