10% of small business owners’ time is spent chasing late payments
For small and medium business owners, an average one tenth of a working day is spent chasing unpaid invoices. That means missing out on a lot of time that could be dedicated to other important aspects of running a business, like ensuring you’re closing more deals for the future instead of trying to get paid for work you’ve already done. Sometimes chasing late payments can be even more tiresome and fruitless if the client faces protracted default or insolvency. In that scenario, without invoice insurance cover in place, your business could quickly accumulate bad debt. That’s where we step in. We will invest the hours recuperating any money you are owed, so you can spend that extra 10% of time on other things.
Payments due after 90 days are usually considered to be protracted default
We’re almost in the fourth month of 2018 and Spring is now upon us, but January still feels like yesterday. Time really does fly. So 3 months, roughly 90 days, can pass by quickly for growing companies with a number of pressing priorities. That’s why our network of experienced underwriters at InvoiceInsure will follow up with unpaid invoices in the event of client insolvency or protracted default, meaning that you can focus more on running your business. We of course hope that it won’t come to that, but in case you are stuck with a high risk client and extended unpaid invoices, we’ll be the safety net to help your business bounce back by claiming any funds you’re due.
Late payment is not illegal and remains very frequent
Despite a legal cap of 60 days for private sector payments and 30 days for public sector purchasing, plus a framework of interest penalties for delayed payers, late payment remains legal in the UK. Lacking legal protection, a company without adequate invoice insurance essentially has no mechanisms for gathering any unpaid invoices owed to them. That’s why taking out invoice insurance with us truly secures reduces the risk of your business accumulating bad debt. It makes financial sense. Plus we can offer you insights into existing and potential clients so you can make more informed decisions in to the future, growing with confidence.
50,000 UK businesses cease trading every year because of bad debt
Bad debt is such a damaging problem that it causes a shocking 50,000 companies to fold each year in the UK alone. We personally know the sheer time it can take trying to get paid for work you’ve already done and that’s how we came up with the concept for InvoiceInsure in the first place. Commanding control over bad-debt losses with a solid invoice insurance policy gives the reassurance that your invoices will be paid even if your customers default.
£5.8 billion of bad debt is written off by Britain’s SMEs every year
For many companies, writing off unpaid receivables is part and parcel of trading. Businesses often estimate the number of unpaid invoices they’ll have to deal with throughout the financial year. After the 90 day mark, companies without invoice insurance tend to simply give up, assuming that the money, sizeable or not, is a lost cause. So it’s easy to see why the UK’s SMEs wrote off such an astonishing amount of bad debt last year. But if those businesses had taken out invoice insurance, a large portion of the money they were owed would have likely been recovered and the overall figure would be much less impressive. Don’t make the mistake that other companies do. Match the ambition of your business with an invoice insurance policy that offers robust protection from client insolvency and protracted default.
We’d be delighted if you get an invoice insurance quote for by clicking the link below – it’s a simple process and won’t take long.
Giulia Macgarr