HOW TO AVOID LATE PAYMENTSFROM YOUR CUSTOMERS

LATE PAYMENTS ARE FREQUENTDo you know that   94%   of North American companies polled by Atradius reported late payments from B2B customers?

Some of them claimed that 4 out of 10 invoices issued by a company are not paid on time . And it can take up to 3 months to get paid in full.*

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  Many companies are dealing with late payments from their customers, which can have an impact on their cash flow. So the way you manage your accounts receivable is important as it plays a vital role in your liquidity. Just sending an invoice is not always sufficient to get paid.

BUT WHY? AND HOW CAN YOU AVOID LATE PAYMENTS?

*Source: ATRADIUS

THE MORE TIME GOES ON, THE LESS LIKELY THE CUSTOMER WILL PAY IN FULL.

After 3 months: a company has a less than 74% chance of collecting the money owed.

After 6 months: the likelihood drops to 30% .

And after 1 year: there is only a 10% probability of getting paid.*

YOU MIGHT THINK THAT CUSTOMERS WOULD PAY ON TIME IF THE PAYMENT PERIOD WERE LONGER. BUT THE REVERSE IS TRUE.

THESE UNPAID INVOICES TURN INTO BAD DEBT.

It happens more often than you think. We’re talking about 2.2% of accounts receivable among North American companies. Do the math for your situation—you’ll see how significant the impact can be!

*Source: blog.e2banytime.com

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Large organizations lose one document every 12 seconds .*

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REASONS FOR LATE PAYMENT

  Complex payment procedures   Errors in the invoice  The invoice gets lost  Disputes about the information in the invoice

*Source: IDC

ANTICIPATE LATE PAYMENTS THROUGH AUTOMATION

SIMPLIFY YOUR PAYMENT PROCESS

E-invoices can be directly saved in the system and the payment can be almost directly triggered from there. Your customers don’t need to look for any other information.

INCREASE ACCURACY OF INFORMATION

With digital invoices, you can ensure that accurate data is entered into your system by placing alerts if essential data is missing. This will boost the quality of your invoices and increase consistency.

TRIGGER ACTION BEFORE LATE PAYMENTS OCCUR

Sometimes the system can draw your attention as soon as an item is missing or problematic, even before billing. So your staff can quickly contact the customer to resolve the issue. With automation, you can schedule reminders to your customers if they haven’t paid yet.

DIGITIZE INFORMATION TO MAKE IT EASIER TO FIND AND AVOID DISPUTES

If your customer loses an invoice or disputes the quantity or other details, your staff can directly check the information in the system or resend the document directly.

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