Businesses are routinely delaying payments to trading partners by forcing them to reissue invoice statements, according to a new survey out today by Credit safe.
Its still a very common factor customers are asking for longer time to pay and yet trade suppliers are asking you to pay more quickly, giving you a massive cash flow squeeze.
One in 10 companies are increasingly using accounting tricks and bizarre excuses to force suppliers to bill them again in an effort to hold on to money for longer.
The survey of 1,000 businesses showed that 96 per cent of firms surveyed have been forced to reissue invoices to their customers in the last 12 months. More than one in 10 suppliers has been forced to reissue at least 20 per cent of client invoices in the last 12 months. And during the same period, one in five companies has had to reissue between 10 and 20 per cent of invoices.
Half of the businesses surveyed that accept cheques for payment said customers were making deliberate mistakes, such as failing to sign the cheque or writing the incorrect amount or date, to stall payments.
Late payment of invoices prevents the efficient flow of cash through the supply chain, which is vital if businesses are to maintain their liquidity during a time when bank lending is restricted. There is a better way. Enable Finance have a suite of products and solutions that will resolve creditor pressure, increase working capital and thus resolve cash flow problems.
If you are fed up with your customers not paying on time and your now suffering from creditor pressure Enable Business Finance have a better way.
To find out specifically how Enable Finance can help your individual business please call Phillip Evans on: 0797 0500 425