Late payments – what you need to know

Anyone involved in a business providing goods or services on a credit basis is likely to deal with late payment from time-to-time. This has a number of effects, including:     Annoyance and irritation; Cash-flow – unless you are in the happy position of having substantial “spare” cash, most businesses rely on payments coming in to meet their outgoings, at least in part; Commercial pressure – particularly if your customer is much larger than you, they may try to leverage other concessions by delaying payment; Cost and/or inconvenience in pursuing the payment; and Ultimately, if the sum is big and/or late enough, a risk of insolvency. I have seen several…