25 days, that’s how long it typically takes for entrepreneurs in the automotive industry to get their invoices paid. Compared to other sectors, that’s a high average. Fortunately, as an entrepreneur, you can do something about it! With these tips, you can get invoices paid faster and improve your cash flow.
Let’s first look at the facts and figures to get a clear picture of payment behaviour and the differences in the automotive industry:
- The trade in heavier commercial vehicles has to wait the longest for payments, averaging 40 days.
- In the passenger car trade, this average is 23 days.
- In other areas, the heavier commercial vehicle trade also performs worse; only a quarter of invoices are paid before the reminder. In the passenger car trade, that percentage is 78%.
By looking at the customers, we can explain these differences. The trade in heavier commercial vehicles mainly has large companies as customers, and they usually buy on account and often pay later. The passenger car trade, on the other hand, is consumer-oriented, and they often pay directly upon delivery or within the payment term of two weeks.
But how do you get invoices paid faster in this industry?
