The
Cost of Unpaid Accounts
A study conducted by the Department for National Statistics
revealed that, after around three months, 75% of all unpaid invoices are
settled. However, if left for another three months that figure then drops to
56%. The longer you leave it, the less likely you are to get paid. The industry
that has suffered the most is the retail and distribution industry, which is currently,
owed a whopping £16.6million in unpaid accounts.
However, all this is set to change. The EU Late Payments Directive
is to be introduced in 2013. It is designed to combat the late payment for
goods and services within the European Union. The main amendment is the
inclusion of a 30-day time-limit for payment as a legal statute. Once that
limit has expired and should the debt still not have been settled, companies
can instruct solicitors, lawyers or debt collection agencies to recover the
outstanding balance – at further cost to the debtor. In short, after 30 days,
the debtor will have to pay the outstanding sum, plus any costs incurred by the
aggrieved party in retrieving that balance.
Recover
your Debts Today
While this may be good news for the future, it may not be of help
to businesses who are waiting on payment now. What many are unaware of is that
there are currently free services available to businesses of all sizes that
will put you in touch with the right DCAs. If you are feeling the squeeze,
thanks to unpaid invoices, consider contacting a company like ComparetheDCA.com,
who can help you get back what is rightfully yours.