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How to improve your business’ cashflow at Christmas
Use the tips and advice in this blog to help your business to maintain a healthy cashflow this Christmas. Most businesses will experience some level of seasonality over the Christmas period. For many retail and catering businesses it is their busiest time of year, but for businesses in other industries, sales can come to a…
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How is economic uncertainty in the UK affecting debt?
According to a recent study, bad debt write-offs have gone up from 1.5% to 2.5% year-on-year due, in part, to economic uncertainty. The Western Europe Payment Practices Barometer research report, carried out by trade credit insurer Atradius, examined how today’s economic uncertainty is affecting payment practices in the UK. Key findings from the study included:…
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What is the difference between bad debt and doubtful debt?
Knowing the difference between bad debt and doubtful debt can help to prevent financial loss to your business. Today’s uncertain economic climate is having a negative effect on UK business payment practices, with a recent study finding that 35% of invoices remain overdue on their due date. Late or non-payment of an invoice is an…
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What tax relief can be claimed on bad debts?
Write-off bad debt and claim bad debt relief to avoid paying tax on income that you have not received. Most businesses will eventually encounter a non-paying customer, especially during today’s difficult economic climate. Bad debts can be very damaging to businesses of all shapes and sizes, so it’s important to minimise your losses by claiming…
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How to create invoices that get paid quicker
Getting paid promptly for the products and services you’ve provided shouldn’t be difficult, but unfortunately it often is. The UK’s late payment culture means that many SMEs are having to wait far longer than they should to receive payment from their debtors. Unpaid invoices can have a negative effect on a business’ cash flow, slowing…
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How long do unpaid invoices remain valid for?
Many SMEs are consistently paid late by their debtors, but just how long do those unpaid invoices remain valid for? UK businesses are currently suffering at the hands of the country’s late payment culture. One third of the UK’s SMEs say that their invoices are not paid until two months after the agreed payment terms.…
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How to charge interest on late payments
Charging interest on late payments is an effective way of protecting your business’ cashflow. UK businesses of all shapes and sizes are suffering due to the country’s late payment culture. 80% of small businesses are paid late, and on average, SMEs are owed £6,142in late payments at any one time. Being paid late can have…
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Funeral debt rises as funeral costs continue to soar
Funeral debt rises as the average cost of a funeral in the UK continues to increase. According to SunLife Insurance, the cost of funerals has risen every year for the last 14 years, equating to a 122% increase since 2004. In 2019, the average cost of a funeral in the UK stands at £4,271, and…
