Prompter payments add confidence to administration advice

Published on February 15, 2013 by Crawfords Accounting

If you’re receiving administration advice, but company liquidation is not yet inevitable, you may be able to take a little comfort from the news that customers in general are settling their invoices faster now than they were a year ago.

During 2012, figures from Experian show that late payments were typically settled in 24.66 days beyond the agreed terms – a day faster than the 25.70 figure seen in 2011.

While many payments are still being made much later than the agreed deadline, it is at least a step towards all companies settling their accounts more promptly – and should help to reduce company liquidation rates by keeping the nation’s communal cash flow looking a little healthier.

If you are currently receiving administration advice, one option could be to focus on any amounts owed by large clients – and not only because they are probably worth the largest amount of money to you.

Companies with over 500 employees are typically the slowest to pay, at 32.10 days beyond agreed terms in 2012.

Target these invoices for settlement, and include statutory interest on the amount owed as permissible by law, and you could add significant amounts to your company’s bottom line, potentially putting you on the road to recovery.

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