The nitrogen agreement: what does it mean for your business?
November 2023 - SMEs are pessimistic about their profitability and the rising number of late payments. This is according to the SME barometer of business association Unizo.
According to Unizo, the profitability problems are due to sharply rising wage costs and energy bills. These weigh on the cost structure of SMEs and depress profits. But the increasing number of late payers also worries the business association. It denounces the "far-reaching and ever-increasing protection consumers enjoy in case of non-payment."
Follow-up late payers
Strict debtor management is, therefore, a must in any business. Keep the following roadmap in mind:
Step 1: written payment reminder
As soon as the payment term is exceeded, send a first written payment reminder by e-mail or post.
Step 2: telephone reminder
Have you still not received a response from your customer three days after the due date of your written reminder? Then enquire by phone. Is the customer unable to pay immediately? Listen to the reasons, show understanding and try to work out a solution, but do not be too lenient: the responsibility lies with the customer, not with you.
Step 3: second and third dunning letters
Did your written and/or telephone request for payment not have the desired result? Then send a second and if necessary, a third reminder. In these reminders, clearly state the previous actions and consequences. In the third reminder letter, clarify that this is the last warning before the claim goes to the collection agency.
Step 4: legal action
In this final step, a collection agency or lawyer takes over from you. They enforce payment of the invoice through legal means. The debtor then pays not only the overdue invoices (plus interest), but also the legal costs.
This is the eighth consecutive quarter of a negative rating
The SME barometer recorded a negative score for the eighth quarter in a row. With a score of -10.57, there is a clear deterioration compared to June, when the score was -3.39. There is relatively high dissatisfaction with the economy, and order books are filling up less, both in the short and longer term.
