How Businesses Can Reduce Payment Delays

Recovering an old payment is important, but preventing payment problems from developing in the first place is even better. Businesses can improve their credit-control process by setting clear expectations before goods or services are supplied.

Define Payment Terms Clearly

Invoices should clearly mention payment terms, due dates, applicable taxes and the amount payable. Agreements should also identify responsibilities and important commercial conditions.

Monitor Outstanding Accounts

Do not wait until an invoice is several months overdue before reviewing it. Maintain an ageing report and establish an internal process for reminders, escalation and account review.

Businesses should also keep delivery and service records properly organised. When the documentation is complete, resolving a payment question can become much easier. Clear processes reduce misunderstandings and allow management to identify problematic accounts earlier.