BusinessBusiness RecoverySMEs must recognise early warning signs of bad debt

SMEs must recognise early warning signs of bad debt

Research in the credit arena continues to point to the fact that SMEs should be doing more to protect themselves from bad debt, and protracted payments from customers. I read some research over the weekend  suggesting that 50% of SMEs continued to deliver goods on credit terms to debtors when unpaid debts were already over 90 days old. Secondly, only 3% of the respondents in this study said they turned to a debt collection agency for help, but when they did, debts were already on average 11 months old. The interesting aspect of this research was that it was looking into trade supplier habits involving companies that had gone bust leaving those suppliers with write offs. Once again, it looks as if there is an imbalance between SME enthusiasm for chasing sales revenue, and unwillingness or lack of expertise in making sure those sales are paid for.   

Related Articles

Martin Williams

Business Recovery Martin Williams

7y Accountancy Age, Reporters
Time to Act against slow payers

Business Recovery Time to Act against slow payers

7y Martin Williams
Cash-struck consumers dent recovery hopes

Business Recovery Cash-struck consumers dent recovery hopes

7y Martin Williams
Sort out the credit sloths

Business Recovery Sort out the credit sloths

7y Martin Williams
Window dressing won't save Britain's high streets

Business Recovery Window dressing won't save Britain's high streets

7y Martin Williams
EU ding dong over accounts filing Exemption

Accounting Standards EU ding dong over accounts filing Exemption

7y Martin Williams
Insolvency stats are head-scratchingly strange

Business Recovery Insolvency stats are head-scratchingly strange

7y Martin Williams
Authorities wake up to £38bn robbery

Business Recovery Authorities wake up to £38bn robbery

7y Martin Williams