Financial Director Report
Late payments have always been a thorny issue for businesses. But the pandemic has exacerbated that problem and hit industry hard, forcing companies to look for new ways to avoid credit risk and collect unpaid invoices.
When the pandemic reared its head at the beginning of 2020, many governments imposed unprecedented social restrictions that forced huge swathes of the business ecosystem to shut down for months on end.
Download to discover:
- How do late payments affect companies and markets?
- Technological advances and solutions to combat late payments
- What can firms do now to combat late payments?
The most obvious short term impact of invoices not being paid is cash flow pressure on companies in the supply chain – and this is something we are seeing happening right now
Technological advances and solutions to combat late payments
Corporates typically break down this late payments issue into three separate areas: credit risk strategy, collections and dispute management. And sectors normally have traditional ways of dealing with each of these areas – particularly around credit risk management. A company’s credit risk strategy is critical because it dictates how much credit that firm chooses to give a client. Get it right, and the client should be able to pay and keep cash inflows moving. Get it wrong, and a company can start to run into cash problems quickly.