How Credit Hound helps businesses tackle late payments and improve cash flow

 

 

Discover how Credit Hound by Draycir helps businesses combat late payments, improve cash flow, and stay compliant with UK payment regulations. Automate credit control today.

Why late payments are a growing problem for UK businesses

Late payments cost the UK economy £11 billion annually and force 38 businesses to close every day. Over 1.5 million businesses, mostly SMEs, are affected. Poor payment practices disrupt cash flow, delay investments, and increase insolvency risks.


The UK Government’s consultation on “Tackling poor payment practices” proposes major reforms, including:

  • Mandatory statutory interest on overdue invoices
  • Maximum payment terms capped at 60 days (reducing to 45 days in future)
  • Financial penalties for persistent late payers
  • Greater transparency through reporting requirements
  • Stronger enforcement powers for the Small Business Commissioner

While these measures aim to create a fairer payment culture, businesses need immediate solutions to protect cash flow and reduce debtor days. That’s where Credit Hound from Draycir comes in.

The impact of late payments on SMEs

Late payments are often caused by:

  • Deliberate delays by large businesses
  • Administrative inefficiencies (poor invoicing, disputes)
  • Sector-specific practices like retention clauses in construction
  • SMEs are particularly vulnerable because they lack the cash reserves to absorb these delays. Without proactive credit control, businesses risk financial instability, even closure.

Why Credit Hound is the ultimate late payment solution?

Credit Hound is an intelligent credit control software that automates collections, improves cash flow, and ensures compliance with evolving UK payment regulations.

Automate credit control and reduce admin

Manual chasing is time-consuming and error-prone. Credit Hound automates:

  • Payment reminders
  • Escalation processes
  • Call lists for overdue accounts
  • This frees your finance team to focus on strategic tasks.

Improve cash flow and reduce debtor days

Credit Hound prioritises overdue accounts and provides real-time dashboards, helping you get paid faster and maintain healthy cash flow.

Stay compliant with new UK payment rules

  • With upcoming legislation mandating maximum payment terms and mandatory interest on late payments, Credit Hound helps you:
  • Track invoice due dates and flag breaches
  • Calculate statutory interest automatically
  • Maintain audit trails for reporting and dispute resolution


Maintain positive customer relationships

Automated, professional communication reduces friction and keeps relationships strong while ensuring timely payments.


Scalable and easy to integrate

Credit Hound integrates with leading accounting and ERP systems, making it a future-proof solution for businesses of all sizes.

Why Act Now?

The UK Government is moving towards zero tolerance for late payments. Businesses that adopt proactive credit control measures now will:

  • Avoid penalties and reputational damage
  • Strengthen cash flow resilience
  • Gain a competitive edge by being financially stable and reliable
  • Take control of late payments today

Don’t wait for legislation to force change, lead the way. Credit Hound from Draycir gives you the tools to:

  • Automate credit control
  • Improve cash flow
  • Stay compliant with UK payment regulations

Book a free demo of Credit Hound today and start getting paid faster.