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?"
How we can Help:
Outsourced Credit Control Service
