The Cheque’s in the Post

The DTI estimates that at least 10,000 businesses fail each year because of late payment of their invoices. This will come as no surprise to those of you who regularly hear ‘the cheque’s in the post’ as an excuse for late payment of an invoice. British businesses are now waiting an average of 61 days for payment.

It is a subject we have covered in previous newsletters but the problem doesn’t go away. The Better Payment Practice Group has recently provided an undated list of the most common excuses for late payment and suggestions for dealing with them. Not rocket science we admit but a useful reminder nonetheless.

Excuse

Action
The director who signs the cheques is on holiday

 Try to find out what provision has been made for paying salaries and other important bills. Often signed cheques will have been left. Stress to the person you are dealing with how important your account is.
The computer is down

 Be persistent in your questioning and if there is a real problem suggest a manual cheque instead.
The cheque’s in the post

 Ask for postage details as a starting point.
Waiting for funds from a large customer

 Ask who, and when payment is expected. Ask whether they can arrange credit with their bank on the security of the debt so that you can be paid.
We’ve lost your invoice

 Offer to fax or email a copy immediately. Then if payment is not forthcoming you’ll know it was a delaying tactic.

There is an argument that says you should work on the basis that late payment of invoices unlike death and taxes is not inevitable.

For your part always make sure you: