• 18 Feb

    Average SME Spends 80 Hours Chasing Invoices Each Month

    We asked 100 SMEs how much time they spent on credit control each month (assuming 7 working hours each day and 22 working days in the average month) and on average they said that they spent 80 hours each month chasing debtors for unpaid invoices.

    That's equivalent to almost 11.5 working days each month and equates to 52% of one employees time.

    I just looked up the average salary of a credit control clerk on the web and found an average for the UK of £17,500 per annum - that will be a cost of closer to £20,000 once NI, phone calls etc are added.

    That would mean that the average SME could be spending £9,100 (most likely £10,400 once the other costs are added!) on credit control every year. If the business owners are undertaking that task themselves, the cost to the business could be even higher.

    When that cost is offset against the cost of factoring, which normally includes a credit control service, factoring becomes a very attractive cost saving option.

    By Glenn Blackman

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pennyfreedom
ifg
inksmoor
closebrothersinvoicefinance
metro bank sme finance
skipton