02 Oct Customers taking more than 22 days to pay their bills
How long does the average small business wait to receive payment for their invoices? And how late is the average payment?
The latest Xero Small Business Index has the answer to both those questions.
Between July 2023 and May 2024, average payment times ranged between 22.2 and 22.8 days, according to Xero’s anonymised and aggregated data. This then fell to 19.1 days in June, although Xero said this is “something that is observed at the end of every financial year” as some clients look to clear their debts by June 30.
Meanwhile, between July 2023 and May 2024, the average debtor paid their bills anywhere from 6.1 to 6.9 days late. In June, this figure dropped to 4.5 days.
Here are three tips from Xero to get paid on time:
- Use online tracking to monitor if your invoices have been opened.
- Set up automated invoice reminders for when due dates are approaching.
- Give your clients the option to make online payments.