Unpaid invoices top £6,000 per workshop
The average workshop is sitting on about £6,000 in unpaid invoices at any one time, according to new research.
The figure is based on analysis of 300,000 invoices processed by 2,300 repairers between January and June.
The study, carried out by vertical specialist software company Klipboard, calculated that this amounts to around £13m in outstanding payments.
It further found that BACS payments take around 20 days for customers to settle on average compared to one day or less with Pay by Link or credit or debit cards. Despite this, 83% of repairers still use BACS, which means more than 30,000 businesses have a combined £180m in outstanding invoices.
Slow payments
As Lochan Sim, vice president of payments at Klipboard, said: “The garage sector has accepted slow payments for a long time. Waiting weeks to be paid for completed work has become normal, but our analysis shows the impact that can have on cash flow and day-to-day operations.
“Across the garages we analysed, millions of pounds are tied up in work that has already been completed but is still awaiting payment. For many businesses, that means less flexibility to invest in the business, manage costs and plan ahead with confidence.
“The good news is that garages don’t have to choose between making things convenient for customers and getting paid promptly. As customer expectations continue to evolve, there’s a clear opportunity for businesses to reduce administration, improve cash flow and create a better payment experience at the same time.”
