Late Payment Interest: Your Rights Under UK Law
Under the Late Payment of Commercial Debts (Interest) Act 1998, any UK business can charge interest on overdue invoices at the Bank of England base rate plus 8% – currently…
Uncategorized
My Customer Is 60 Days Late Paying – What Are My Options?
If a customer is 60 days late paying an invoice, your options range from a formal demand letter and charging statutory interest under the Late Payment of Commercial Debts Act…
Why Is My Business Profitable But Always Short of Cash?
A business can be profitable but short of cash because profit is an accounting measure recorded when a sale is made, while cash only arrives when the customer actually pays…
Working Capital Finance Options for UK SMEs
Working capital finance is any form of funding that helps a business cover the gap between paying its costs and collecting payment from customers – and for most growing UK…
Negative Working Capital: When It’s a Problem and When It Isn’t
Negative working capital means your business has more current liabilities than current assets – and despite what your instincts might tell you, that is not always a bad thing. For…
What Payment Terms Should a Small Business Set?
The right payment terms for your small business depend on your industry norms, your cash position, and your negotiating power – but for most UK SMEs, 14 to 30 days…
How to Extend DPO Without Damaging Supplier Relationships
Extending your days payable outstanding (DPO) means keeping cash in your business for longer by taking more time to pay suppliers – but doing it badly can cost you the…
Accounts Receivable Turnover Ratio: Definition, Formula and How to Use It
The accounts receivable turnover ratio tells you how many times per year your business collects its average outstanding receivables – in plain terms, how efficiently you are turning invoices into…
Debtor Days vs DSO: Are They the Same Thing?
Yes – debtor days and days sales outstanding (DSO) are essentially the same metric, measuring the average number of days it takes your customers to pay you after you invoice…
How to Reduce Your DSO: 9 Practical Strategies That Work
Reducing your DSO starts with invoicing the same day you deliver, then systematically removing every friction point between your invoice and your customer’s payment. For UK SMEs, late payment is…