The economy may be improving but late payment of invoices is still a problem for small business. So say the Forum of Private Business (FPB) whose latest survey revealed some worrying statistics in respect of late payers.
According to the survey 23% of respondents say that they have seen an increase in the number of late payments whilst 29% report that the number of days payments have been delayed beyond the deadline have also increased. In the light of this, respondents have called for better publicity in respect of late payment issues as well as a range of sanctions for late payers to include barring persistent offenders from government contracts.
Responding to the survey’s findings, FPB Chief Executive, Phil Orford MBE said “upwards of £30 billion remains tied up in late payments, costing a typical small business 130 hours a year to chase and meaning that a third are forced to seek external finance to cover the gaps in cash.” Tackling late payments is a challenge which potentially affects every business and even those within the health sector are not immune. In fact, businesses such as physiotherapy and osteopathy which rely on patients paying for treatments not only have to cope with potential late payers but also with a loss of income from those who fail to turn up for appointments.
Alongside diary management and appointment reminder solutions which aim to cut down on missed appointments, health practices may also wish to turn to secure card processing as a means of ensuring swift payment for treatments. With booked appointments backed up by a pre-authorised card payment the health practitioner knows that they will receive prompt payment following the appointment. And if the patient fails to turn up, a card payment can still be taken in accordance with the practice’s cancellation policy.
Pre-authorising a card at the time of booking doesn’t commit the patient to using that card following their appointment. If they choose to pay by cheque or cash or to use another card then the pre-authorised amount can simply be cancelled. This means the patient retains payment flexibility whilst at the same time the practice receives prompt payment; helping to smooth over cash flow issues. The simple fact that a payment has been pre-authorised also helps to act as a spur to patients to keep their appointments, helping to reduce the number of gaps in a practice diary and ensuring that those who need treatment receive it promptly.