What is the impact of late payments on companies?

[bitheerani319]

Late payments from customers, or bad debts , are one of the risks faced by companies that offer products or services on credit. This risk should not be taken lightly, since poor management of accounts receivable can cause not only financial problems, but, in the worst case, bankruptcy of the business.

In this scenario, resorting to collection strategies and even the implementation of a collection management system are preventive measures that help not only mitigate the risk, but also improve the recovery rate.

In this post we will discuss in greater detail what late payment is , how it buy uk mobile number companies, and how to mitigate the risks inherent to it.

What will you find in this text?

Late payment What is it?

How does late payment affect a company?

1. Deterioration of cash flow

2. It represents a barrier to growth

3. It affects the company's business relationships

Preventive measures against the risk of late payment

1. Implement technology to manage your accounts receivable

2. Conduct a rigorous customer evaluation

3. Prepare contracts that clearly detail payment terms

4. Regularly follow up on payments and your collections management

5. Train your collection staff



Late payment What is it?
Late payments are understood as the delay or delay of pending payments. In this sense, a client falls into arrears with your company when they are late on the payment deadline for their invoice. As a consequence of this delay, the cash flow of your business is affected. If this happens with a high number of your accounts receivable, which affects the liquidity of your business, you could have problems covering your operating expenses, paying suppliers, among others.