Trade credit insurance is all too often overlooked by companies. However, research by Bacs Payment Schemes shows that small businesses in the UK are spending, on average, £10.8 billion a year trying to recover overdue payments.
Nearly 80% of companies who experience late payments say that they are being kept waiting one month or longer beyond their agreed terms. Furthermore, agreed modus operandi, such as the Prompt Payment Codes, are simply not working and are ineffective. The financial effects of this are certainly being felt. This means that SMEs are spending, on average, £955 a month to try and reclaim late business payments. Over 25% of SME owners admitted to relying on bank overdrafts as they wait to receive late payments.
Further proof, if it were needed, of the benefits of taking out trade credit insurance to insure against not getting paid by your customers. Don’t give yourself sleepless nights. Call Dan Nixon now on 0121 452 8740 or e mail him at firstname.lastname@example.org