Recent research by credit reference agency Experian has shown that from January to March 2010 businesses paid their bills an average of 20.9 days late, compared to 23.6 days late in the first quarter of 2009.
This is obviously a move in the right direction but it struck me that, assuming typical business terms of 30 days, businesses are not getting paid until more than 50 days after they have invoiced. In my mind, a 30 day credit period is pretty generous as it is.
If you are not getting paid within 30 days for the work you do then perhaps it is time to look at your standard terms and conditions to see if there is a better way of getting your customers to pay.
Do not assume that customers will always want 30 days credit (and then take much longer). Have confidence that they are choosing you for the quality of your work and not the flexibility of your payment terms. Get paid sooner!
Tags: credit terms
