{"id":71077,"date":"2018-03-26T09:35:41","date_gmt":"2018-03-26T07:35:41","guid":{"rendered":"https:\/\/tcm.be\/5-good-reasons-to-pay-your-invoices-in-time\/"},"modified":"2025-11-26T19:58:23","modified_gmt":"2025-11-26T18:58:23","slug":"5-good-reasons-to-pay-your-invoices-in-time","status":"publish","type":"post","link":"https:\/\/tcm.be\/en\/5-good-reasons-to-pay-your-invoices-in-time\/","title":{"rendered":"5 good reasons to pay your invoices in time"},"content":{"rendered":"
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\"Paid<\/figure>\n<\/div>\n\n\n

As we all know, it can happen to anyone at any time. Peoplefail to pay<\/strong>invoices<\/strong><\/a>for many reasons. They might forget, lose a document or have insufficient cash flow, or they might be arguing over the amount or simply refusing outright to pay. However, probably less well known is the fact that thesepayment delays<\/strong>have real repercussions for the party that was expecting to receive theinvoice<\/strong>amount<\/a>. TCM presentsFive good reasons to pay your invoices in time.<\/strong>\u00a0<\/p>\n\n\n\n

Avoid additional costs<\/h2>\n\n\n\n

One obvious advantage ofpaying your invoices on time<\/strong>is to avoid payingadditional costs<\/strong>that will inevitably be added to the initial amount. After all, most traders and companies deal withunpaid debts<\/strong>by including a penalty clause in the contract that stipulateslate payment interest<\/strong><\/a>at variable rates, together with flat-rate amounts. Moreover, there is also what\u2019s known as thelegal interest rate<\/strong>set by the Federal Public Service Finance. For 2018, this rate is set at2%<\/strong>a year for private business between natural and legal persons and for transactions between private individuals and retailers (Belgian official journal 11\/1\/2018). For the first half of 2018, it is set at8%<\/strong>a year for commercial transactions (Belgian official journal 24\/1\/2018).<\/p>\n\n\n\n

Established trusted commercial relations<\/h2>\n\n\n\n

Paying your invoices within the specified time frame<\/strong>is probably the best way of maintainingserene<\/strong>commercial relations. Establishing a relationship of trust with your partner can be highly beneficial in the long term. Moreover, remember that your supplier may also have to deal with cash flow problems of their own. As well, don\u2019t forget that these commercial relations play an important role in upholding yourreputation<\/strong>.Paying your bills on time<\/strong>conveys an image of stability, honesty and financial robustness. Suppliers are also more willing to grant discounts to clients who pay promptly.<\/p>\n\n\n\n

Late payment costs money<\/h2>\n\n\n\n

As mentioned above,payment delays<\/strong>are expensive for thedebtor<\/strong><\/a>, but even more so for thecreditor<\/strong><\/a>. After all, a business faced with numerousunpaid debts<\/strong>sees its cash flow squeezed and may in turn run the risk of being unable to make scheduled payments such as its own suppliers\u2019 invoices or even its employees\u2019 salaries. This type of situation can sometimes even lead to the out-and-outbankruptcy<\/a>of a company, as thelate payments<\/strong>can rapidly generate a cascade effect that benefits no one. We should also mention that the recovery procedures put in place by individuals and companies in response tolate payments<\/strong>also clearly have acost<\/a>.<\/p>\n\n\n\n

You\u2019ll end up paying anyway<\/h2>\n\n\n\n

If you can\u2019t provide a valid reason that is accepted by the supplier, you\u2019re going to have to pay up. Don\u2019t be under any illusions: thecreditor<\/strong>wants torecover<\/strong>the money owed to them and is highly unlikely to let the matter drop. Moreover, while they do have a cost, numerousdebt recovery<\/strong>procedures exist to encourage debtors to pay up. Furthermore, at TCM, 50% of unpaid debts areresolved<\/a>,<\/strong>50% of them without going to court.<\/p>\n\n\n\n

You wouldn\u2019t like to be paid late yourself<\/h2>\n\n\n\n

Lastly, the ethical issue clearly comes into the equation. If you sell a service or asset to somebody, you want itto be paid for on time<\/strong>. This seems logical to you, so what\u2019s good for the goose is good for the gander. As you\u2019ll have gathered, there are as manygood reasons for paying your bill<\/strong>as there are for not paying it. However, one thing\u2019s for sure: in order to avoid\u00a0 problems, costs and additional procedures that could be long and costly for you and your debtor,paying your invoices on time<\/strong>is oftenthe easiest solution<\/strong>.<\/p>\n\n\n\n

\n\n\n
\n
\"Paid<\/figure>\n<\/div>\n\n\n

As we all know, it can happen to anyone at any time. Peoplefail to pay<\/strong>invoices<\/strong><\/a>for many reasons. They might forget, lose a document or have insufficient cash flow, or they might be arguing over the amount or simply refusing outright to pay. However, probably less well known is the fact that thesepayment delays<\/strong>have real repercussions for the party that was expecting to receive theinvoice<\/strong>amount<\/a>. TCM presentsFive good reasons to pay your invoices in time.<\/strong>\u00a0<\/p>\n\n\n\n

Avoid additional costs<\/h2>\n\n\n\n

One obvious advantage ofpaying your invoices on time<\/strong>is to avoid payingadditional costs<\/strong>that will inevitably be added to the initial amount. After all, most traders and companies deal withunpaid debts<\/strong>by including a penalty clause in the contract that stipulateslate payment interest<\/strong><\/a>at variable rates, together with flat-rate amounts. Moreover, there is also what\u2019s known as thelegal interest rate<\/strong>set by the Federal Public Service Finance. For 2018, this rate is set at2%<\/strong>a year for private business between natural and legal persons and for transactions between private individuals and retailers (Belgian official journal 11\/1\/2018). For the first half of 2018, it is set at8%<\/strong>a year for commercial transactions (Belgian official journal 24\/1\/2018).<\/p>\n\n\n\n

Established trusted commercial relations<\/h2>\n\n\n\n

Paying your invoices within the specified time frame<\/strong>is probably the best way of maintainingserene<\/strong>commercial relations. Establishing a relationship of trust with your partner can be highly beneficial in the long term. Moreover, remember that your supplier may also have to deal with cash flow problems of their own. As well, don\u2019t forget that these commercial relations play an important role in upholding yourreputation<\/strong>.Paying your bills on time<\/strong>conveys an image of stability, honesty and financial robustness. Suppliers are also more willing to grant discounts to clients who pay promptly.<\/p>\n\n\n\n

Late payment costs money<\/h2>\n\n\n\n

As mentioned above,payment delays<\/strong>are expensive for thedebtor<\/strong><\/a>, but even more so for thecreditor<\/strong><\/a>. After all, a business faced with numerousunpaid debts<\/strong>sees its cash flow squeezed and may in turn run the risk of being unable to make scheduled payments such as its own suppliers\u2019 invoices or even its employees\u2019 salaries. This type of situation can sometimes even lead to the out-and-outbankruptcy<\/a>of a company, as thelate payments<\/strong>can rapidly generate a cascade effect that benefits no one. We should also mention that the recovery procedures put in place by individuals and companies in response tolate payments<\/strong>also clearly have acost<\/a>.<\/p>\n\n\n\n

You\u2019ll end up paying anyway<\/h2>\n\n\n\n

If you can\u2019t provide a valid reason that is accepted by the supplier, you\u2019re going to have to pay up. Don\u2019t be under any illusions: thecreditor<\/strong>wants torecover<\/strong>the money owed to them and is highly unlikely to let the matter drop. Moreover, while they do have a cost, numerousdebt recovery<\/strong>procedures exist to encourage debtors to pay up. Furthermore, at TCM, 50% of unpaid debts areresolved<\/a>,<\/strong>50% of them without going to court.<\/p>\n\n\n\n

You wouldn\u2019t like to be paid late yourself<\/h2>\n\n\n\n

Lastly, the ethical issue clearly comes into the equation. If you sell a service or asset to somebody, you want itto be paid for on time<\/strong>. This seems logical to you, so what\u2019s good for the goose is good for the gander. As you\u2019ll have gathered, there are as manygood reasons for paying your bill<\/strong>as there are for not paying it. However, one thing\u2019s for sure: in order to avoid\u00a0 problems, costs and additional procedures that could be long and costly for you and your debtor,paying your invoices on time<\/strong>is oftenthe easiest solution<\/strong>.<\/p>\n\n\n\n

\n\n\n","protected":false},"excerpt":{"rendered":"

As we all know, it can happen to anyone at any time. Peoplefail to payinvoicesfor many reasons. They might forget, lose a document or have insufficient cash flow, or they might be arguing over the amount or simply refusing outright to pay. However, probably less well known is the fact that thesepayment delayshave real repercussions […]<\/p>\n","protected":false},"author":11,"featured_media":72209,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[63],"tags":[],"class_list":["post-71077","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/tcm.be\/en\/wp-json\/wp\/v2\/posts\/71077","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tcm.be\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tcm.be\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tcm.be\/en\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/tcm.be\/en\/wp-json\/wp\/v2\/comments?post=71077"}],"version-history":[{"count":1,"href":"https:\/\/tcm.be\/en\/wp-json\/wp\/v2\/posts\/71077\/revisions"}],"predecessor-version":[{"id":72210,"href":"https:\/\/tcm.be\/en\/wp-json\/wp\/v2\/posts\/71077\/revisions\/72210"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tcm.be\/en\/wp-json\/wp\/v2\/media\/72209"}],"wp:attachment":[{"href":"https:\/\/tcm.be\/en\/wp-json\/wp\/v2\/media?parent=71077"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tcm.be\/en\/wp-json\/wp\/v2\/categories?post=71077"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tcm.be\/en\/wp-json\/wp\/v2\/tags?post=71077"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}