Did you hear?
Late payment times for New Zealand firms have headed up over the last two years reversing a long downward run.
That’s slightly concerning isn’t it? Have you noticed an increase in late payers in your own firm? They’re a hassle aren’t they.
illion’s analysis of Q1 2018 shows the average late payment time for all businesses in NZ was 6.8 days longer than their specified terms of trade.
From the graph below you can see how payment times steadily improved between 2011-2015, so it’s discouraging to see late payers on a steady rise again, as of Q4 (2016).
Are you waiting 6.8 days outside your terms of trade to be paid? …Maybe more?
Did you know – professional service firms are typically waiting 4 times longer (on average) than other industries to be paid?
Isn’t that funny. The very industries charged with making sure everyone’s elses businesses are in order are on average getting paid 42 days AFTER payment is due.
Bad news for BIG firms.
Out of small businesses and large firms – who do you think has the highest late payment times?
If you guessed large firms (500+ employees), you guessed right. Large firms are waiting 9.2 days to be paid outside their terms of trade. This is mirrored with large professional service firms having the worst debtor days of the sector.
Smaller businesses (1-5 employees), are still waiting – but 2.3 days less than large firms (although that is a steep 21.1% increase since last year).
Prompt Payments are Slipping.
You guessed it – more bad news for New Zealand business. Overall - prompt payments have slipped from 80.5% in March 2017, all the way down to 73.8% in March 2018.
Information is POWER.
With an awareness of what looks like a steady increase in slow payers you may be thinking “What can I do about it?”
If your firm is suffering from increasingly late payments, RELAX. There are solutions to improve payments quickly and efficiently.
To begin - Download your FREE copy of “It’s Your Money, So Don’t Play Bank”. Read 6 proven strategies to help you get paid faster. You too can enjoy a healthy, positive cash flow in your professional service business.