May 30 2015
New research published by Intrum Justitia shows that a third of european companies say that collecting payment from customers more quickly would enable them to hire more staff. 60% of businesses think that holding back payments is part of a deliberate strategy by customers.
Nearly 9,000 companies in 29 countries were asked the question "Would you hire more if you got invoices paid faster?", 32% answered "Yes"
When asked about the causes of their late payments, 70% of respondents thought it was because their customer was in financial difficutly, but 60% felt that late payment was a deliberate strategy by their customers.
|Cause of Late Payment||Percentage of Firms|
|1||Debtor in Financial Difficulty||70%|
|2||Intentional Late Payment||60%|
|3||Administrative Inefficiency at Customer||44%|
|4||Disputes Regarding Goods or Services||18%|
Samantha White, CEO of My Credit Controllers said: "If your business is struggling with late payments from customers, you could consider using an outsourced credit control service to improve your cash flow?"
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