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Europe’s top 1,000 publicly-quoted companies have a €291.1 billion cashflow
problem created by unhappy non-paying customers inflating accounts receivable,
according to research by The Customer Value Group (CVG).
By addressing the underlying causes of disjointed customer service and credit
collection practices, CVG believes these businesses could increase profits by
€27.8bn a year.
In response to the findings, CVG is offering companies a free accounts
receivable analysis that measures the size and financial impact of their ‘AR
wastage’, and rates their performance against the industry sector benchmark
average.
UK businesses are amongst the worst performers in Europe.
Collectively, the 272 UK companies analysed in the research were found to be
leaking €105 billion a year in uncollected cash.
Of this, €26.8 billion was due to customers withholding payments due to
disputes, and €21.4 billion due to unresolved customer queries.
In addition, €56.8 billion alone was due to poor collection practices.
As a consequence, these businesses lost a combined profit opportunity of €4.8
billion.
To take up the free benchmark analysis offer, contact CVG at
research@customervaluegroup.com,
and provide Balance Sheet and P&L data for the last financial year.
Source:
Credit
Control Journal
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