Things are undoubtedly tough for business with the retail sector suffering and major banks are tightening their belts as their customers fall behind with their repayments.
This has led to larger companies getting more aggressive and
1) forcing extended credit terms on suppliers
2) demanding discounts on already agreed prices
3) demanding settlement discounts for just paying on time
4) Imposing retrospective rebates for goods already delivered.
5) Using late payment as an easy way of funding their own cash flows.
These are extremely worrying developments for the whole business community.
It is now more important than ever for small businesses to protect themselves and ensure invoices are paid on time.This will help them avoid potential cash flow problems, which, if not addressed quickly could result in the ultimate closure of their business.
The internet based service helping vivtims of late payments launched by DUE2PAY LIMITED has been specifically designed to help these companies recover their overdue invoices, without the need to go to court, also to share information on companies identified as late payers by fellow members, giving them the opportunity to make more informed decisions in dealing with a particular company.
Quote 'DUE2PAY has some unique features which are worth their weight in Gold'
Try it now with their free 60 day trial. The monthly payments of £15 are excellent value.
Sunday 28 December 2008
Tuesday 23 December 2008
Defeat the late invoice payers
All UK Limited companies can join www.due2pay.co.uk to stay one step ahead in the invoice payment stakes. The closure of firms in the retail sector is making things tougher for all suppliers. What happens at corporate level impacts on the consumer. The employees of Woolworths, MFI and other retailers will be tightening their belts and will not have the disposable income to spend as in previous years. The knock on effect is not only within the retail market but also the supply industry to those firms. These will involve contracts for cleaning, security and shop fitting. All will feel the pinch more in a declining market. Costs and overheads will be looked at more closely, credit will be pushed to the limit and companies may ask for extended credit or take it without asking. Companies which are less financially aware will not realise that giving an extra month credit is the same as giving an interest free bank loan. Imagine going to your bank and ask for £10,000 on a 0% free loan for 1 month. This is where debt recovery along with business debt collection comes in to play.
Longevity in the retail trade is no guarantee for continued survival, Woolworths has been around for almost 100 years. The winter of 2009 is being described as a High Street Bloodbath triggered in part by the biggest decline in consumer spending for 13 years.
All UK Limited companies can join www.due2pay.co.uk to stay one step ahead in the invoice payment stakes. To describe DUE2PAY in a few words is hard as the service provided is unique. It is a members club which allows members to find out who is paying late in GREAT BRITAIN Limited. Company credit checks are important for deciding on doing business with a new customer. DUE2PAY goes a few steps further by making information on late payers available, something which has not been done to this extent before.
The Watch List feature at DUE2PAY is available to all members. Any member can create a list of companies which they want to keep an eye on. When a watched company is listed on DUE2PAY the member is sent an email advising them of this. The member can log onto the site and immediately contact the supplier which made the listing. Consider it to be a UK wide breakfast club. The members details are confidential on the site but are encouraged to exchange contact details.
Longevity in the retail trade is no guarantee for continued survival, Woolworths has been around for almost 100 years. The winter of 2009 is being described as a High Street Bloodbath triggered in part by the biggest decline in consumer spending for 13 years.
All UK Limited companies can join www.due2pay.co.uk to stay one step ahead in the invoice payment stakes. To describe DUE2PAY in a few words is hard as the service provided is unique. It is a members club which allows members to find out who is paying late in GREAT BRITAIN Limited. Company credit checks are important for deciding on doing business with a new customer. DUE2PAY goes a few steps further by making information on late payers available, something which has not been done to this extent before.
The Watch List feature at DUE2PAY is available to all members. Any member can create a list of companies which they want to keep an eye on. When a watched company is listed on DUE2PAY the member is sent an email advising them of this. The member can log onto the site and immediately contact the supplier which made the listing. Consider it to be a UK wide breakfast club. The members details are confidential on the site but are encouraged to exchange contact details.
Thursday 18 December 2008
Late payment of invoices is a hot potato now and has always been around. http://www.due2pay.co.uk/ has been set up to tackle the problem of late payment and Debt Recovery by levelling the playing field where at the moment it is stacked in favour of the customer. The difference today is that ruthless management fired by profitability has been replaced by the distinct need to use a supplier’s money in order to fund operating costs and wages. Many new start ups are by people who are enthusiasts in their chosen field, design, engineering, gardening, wood working. These businesses are at the mercy of today’s business environment. Many of them don't realise the effect of giving a company an extra few months of credit. Only when the supplier goes to thebank themselves for credit to find out what it costs to borrow £10,000 for a month will they realise why they themselves have cashflow problems and need to resort to Business Debt collection. A well known statistic is going round that 1 in 10 businesses are in danger of collapse due to cash flow problems. SMEs need to be alert to those that will take advantage, they also need to hand over the handling of finances to their staff who deal with it on a daily basis. They need to ask their staff to be on the ball on their behalf. A Company Credit Check is always an important starter but companies should not ignore their own gut feelings
Sunday 7 December 2008
........describe DUE2PAY as the must have business membership
........describe DUE2PAY as the must have business membership for all Limited Companies as necessary to financial well being as your normal credit checks. DUE2PAY goes much further than telling you if a business is credit worthy. It lets you speak with other business which are having trouble getting paid by any company you find listed as as a late payer on their site. Businesses are facing increasing problems with late invoice payments, bad debts and Debt Recovery. DUE2PAY is a website which encourages late payers to pay the bills they own. The view is that instead of the headache of court action or a solicitor’s letter, you can list a company as a late payer with www.due2pay.co.uk and share that information with other members. Dispensing with solicitor’s letters and court action. DUE2PAY can be thought of as a UK wide business club, bringing members together over the internet to discuss business in the same way that they would if they were members of a local club having breakfast meetings.
The best thing about DUE2PAY is the incredible low cost for such a needed service. Free membership for the first two months, this is followed by only £15 a month. Compare this with the high costs of sending a solicitor’s letter, the interest you pay your bank or the costs of factoring.The success of local business clubs and networking is recognised by those who join them. Late payment is a common topic. In some industries is recognised that the longer you wait to chase a late invoice debt it is less likely the invoice will be paid. Add to this the interest you are paying out to fund the product or service supplied, the internal costs of employing someone to make the chasing phone calls, to write letters or the cost of taking legal action the overall cost is usually hidden. The warning signs are easily read but companies choose to take a positive point of view expecting to receive payment soon. However it is common to discover that your debtor is also a debtor to other companies. If you delay in recovering monies owed, your debtor may be wound up or made bankrupt before you get the money you are owed.The government has introduced legislation allowing companies to add late payment interest into their invoicing structure. Take up has been slow and is considered to be an administrative obstacle for small businesses which just want to be paid for the goods or services supplied. Using www.due2pay.co.uk will highlight to your customer that you expect payment. If he is doing the same with his other suppliers, they will soon find out through the site. In addition, other companies which he approaches will be forewarned with the site’s Watch List. This is a useful feature which allows members to list companies and as soon as that company is registered as a late payer they receive an email letting them know that their Watch List has been ‘triggered’.DUE2PAY is up there with other traditional methods of business vetting such as business debt collection and company credit checks. It has an advantage of alerting members to things which are happening recently. The historical or traditional check methods should not be ignored as they are valuable indicators of how a company trades, their profitability and ability to weather hard times.
The best thing about DUE2PAY is the incredible low cost for such a needed service. Free membership for the first two months, this is followed by only £15 a month. Compare this with the high costs of sending a solicitor’s letter, the interest you pay your bank or the costs of factoring.The success of local business clubs and networking is recognised by those who join them. Late payment is a common topic. In some industries is recognised that the longer you wait to chase a late invoice debt it is less likely the invoice will be paid. Add to this the interest you are paying out to fund the product or service supplied, the internal costs of employing someone to make the chasing phone calls, to write letters or the cost of taking legal action the overall cost is usually hidden. The warning signs are easily read but companies choose to take a positive point of view expecting to receive payment soon. However it is common to discover that your debtor is also a debtor to other companies. If you delay in recovering monies owed, your debtor may be wound up or made bankrupt before you get the money you are owed.The government has introduced legislation allowing companies to add late payment interest into their invoicing structure. Take up has been slow and is considered to be an administrative obstacle for small businesses which just want to be paid for the goods or services supplied. Using www.due2pay.co.uk will highlight to your customer that you expect payment. If he is doing the same with his other suppliers, they will soon find out through the site. In addition, other companies which he approaches will be forewarned with the site’s Watch List. This is a useful feature which allows members to list companies and as soon as that company is registered as a late payer they receive an email letting them know that their Watch List has been ‘triggered’.DUE2PAY is up there with other traditional methods of business vetting such as business debt collection and company credit checks. It has an advantage of alerting members to things which are happening recently. The historical or traditional check methods should not be ignored as they are valuable indicators of how a company trades, their profitability and ability to weather hard times.
Sunday 23 November 2008
Google DUE2PAY now for better cash flow
Late payment is a problem for many UK businesses and can lead to serious cash flow problems, it reduces profits and can threaten commercial survival. If a business is continually paid late it can have no option but to raise its prices, if it can, to reflect the costs of the finance required, or going into liquidation is another option.
The act of raising prices in the current climate can cause their customers to change their supplier. There are and always will be businesses which have no qualms about using the the ‘protection’ of using Limited Company status to avoid payment and debts which they have no intention of paying. Debt Recovery initiatives are often too late and sometimes the late payer themselves are so near the line that the Business Debt Collection alternatives have no effect.
Early use of DUE2PAY can serve as an early warning device for all UK limited companies and as a Business Debt Collection method in it’s own right.
In today’s climate, companies which are living hand to mouth, being short of work sometimes ignore normal business precautions and accept orders without making good credit checks.
Google DUE2PAY and you will find a simple tool to help defend yourself against unscrupulous companies which sacrifice their suppliers in pursuit of their own profitability.
DUE2PAY is a novel approach which has been wanting in the UK commercial world for many years. It addresses late payment by using the internet to make it possible to put companies who suffer late payment in touch with each other. For the first time you can list a company as a late payer on a web site and other companies which are dealing with that company are able to contact you. Members are anonymous on the site but can if they wish exchange details and join forces to combat the problems caused by a specific company.
Another feature of the site is the ability to create a WATCH LIST of companies which you want to keep an eye on. As soon as a company is listed as a late payer, all members with that company on their WATCHLIST will receive an email saying that company has been listed.
DUE2PAY is giving teeth to the supplier, enabling them to take action on companies which could drive them under.
The act of raising prices in the current climate can cause their customers to change their supplier. There are and always will be businesses which have no qualms about using the the ‘protection’ of using Limited Company status to avoid payment and debts which they have no intention of paying. Debt Recovery initiatives are often too late and sometimes the late payer themselves are so near the line that the Business Debt Collection alternatives have no effect.
Early use of DUE2PAY can serve as an early warning device for all UK limited companies and as a Business Debt Collection method in it’s own right.
In today’s climate, companies which are living hand to mouth, being short of work sometimes ignore normal business precautions and accept orders without making good credit checks.
Google DUE2PAY and you will find a simple tool to help defend yourself against unscrupulous companies which sacrifice their suppliers in pursuit of their own profitability.
DUE2PAY is a novel approach which has been wanting in the UK commercial world for many years. It addresses late payment by using the internet to make it possible to put companies who suffer late payment in touch with each other. For the first time you can list a company as a late payer on a web site and other companies which are dealing with that company are able to contact you. Members are anonymous on the site but can if they wish exchange details and join forces to combat the problems caused by a specific company.
Another feature of the site is the ability to create a WATCH LIST of companies which you want to keep an eye on. As soon as a company is listed as a late payer, all members with that company on their WATCHLIST will receive an email saying that company has been listed.
DUE2PAY is giving teeth to the supplier, enabling them to take action on companies which could drive them under.
Friday 14 November 2008
.... accepted practice for Companies to pay bills late ? ?
Late Payers say it is accepted practice ......
Late payers have over the years paid bills when it has suited them. Without being challenged, and many of us are guilty of this it has grown into accepted practice. In the current economic downturn, it is common for big companies to delay payments to smaller suppliers and use bullying tactics to legitimise this practice. Pressure is on the larger companies but it is their smaller suppliers which can help stop late payments happening. Many small suppliers are finding themselves pushed to the wall and closing down because of this impossible cash flow situation. A company credit check gives information from a historical perspective it is a valid form of credit check management in the same way that debt recovery is used when things start to go pear shaped.
We have set up http://www.due2pay.co.uk/ specifically to help businesses tackle the issue of late payment from their customers. Members are able to register late payments which are affecting their business. An email and fax is sent to the customer letting them know that if the bill is not paid within 14 days, other members will be able to see details of the non or late payer payer.
The beauty of the internet is that we can put members in touch with each other where ever they are in the UK. So if you spot a member is having payment problems with one of your customers or with one of your intended customers, you can get in contact with them.
DUE2PAY can be considered to be an added arm to the business debt collection industry, though we do not handle funds or take a commission. We work to get outstanding monies owed paid on time. The business banking world is tightening its belt with banks closing the doors on many small businesses which need money to pay their staff, overheads and day to day running costs. This is not the fault of the banks, in many cases, if customers paid their bills loans would not be needed from banks. Many companies are being forced into bankruptcy.
To use http://www.due2pay.co.uk/ there must be no dispute over an invoice, if the buyer thinks it is in dispute, he can register that on the site. Members are anonymous on the site but are expected to enter into discussions through the site message system if someone contacts them.
We are trying to level the playing field and avoid the secrecy which late payers have traditionally relied upon. If you are intending going to court or to use a solicitor, try http://www.due2pay.co.uk/ as an alternative and use your experience to help others.
Late payers have over the years paid bills when it has suited them. Without being challenged, and many of us are guilty of this it has grown into accepted practice. In the current economic downturn, it is common for big companies to delay payments to smaller suppliers and use bullying tactics to legitimise this practice. Pressure is on the larger companies but it is their smaller suppliers which can help stop late payments happening. Many small suppliers are finding themselves pushed to the wall and closing down because of this impossible cash flow situation. A company credit check gives information from a historical perspective it is a valid form of credit check management in the same way that debt recovery is used when things start to go pear shaped.
We have set up http://www.due2pay.co.uk/ specifically to help businesses tackle the issue of late payment from their customers. Members are able to register late payments which are affecting their business. An email and fax is sent to the customer letting them know that if the bill is not paid within 14 days, other members will be able to see details of the non or late payer payer.
The beauty of the internet is that we can put members in touch with each other where ever they are in the UK. So if you spot a member is having payment problems with one of your customers or with one of your intended customers, you can get in contact with them.
DUE2PAY can be considered to be an added arm to the business debt collection industry, though we do not handle funds or take a commission. We work to get outstanding monies owed paid on time. The business banking world is tightening its belt with banks closing the doors on many small businesses which need money to pay their staff, overheads and day to day running costs. This is not the fault of the banks, in many cases, if customers paid their bills loans would not be needed from banks. Many companies are being forced into bankruptcy.
To use http://www.due2pay.co.uk/ there must be no dispute over an invoice, if the buyer thinks it is in dispute, he can register that on the site. Members are anonymous on the site but are expected to enter into discussions through the site message system if someone contacts them.
We are trying to level the playing field and avoid the secrecy which late payers have traditionally relied upon. If you are intending going to court or to use a solicitor, try http://www.due2pay.co.uk/ as an alternative and use your experience to help others.
Tuesday 11 November 2008
DUE2PAY targets late payers
It has long been said that UK companies have a reputation of being the worst of the European late payers. Legislation to reduce payment delays and add interest to overdue invoices has been in place for a long time with little sign that it is being adopted.
A major factor for UK companies taking longer to pay invoices was the increase in interest rates. In times of high interest rates it was natural to look on suppliers as a cheap form of loan. Extending payment for 1 month means that you do not have to borrow and pay interest to a bank to fund that loan for 1 month. With banks tightening their belts it is harder to get loans and coupled with a reduction in interest rates the delaying of payment still continues as a method of managing cash flow.
Industry late payment figures have shocked industry observers who fear that late payment is likely to get worse with the rise in interest rates and the economy taking a downturn, factors that make retaining cash for as long as possible even more attractive. This level of late payment comes despite legislation phased in since 1998 that was designed to encourage better payment practice by allowing firms to claim interest on Invoices that were not paid on time.
The UK culture of late payment damages business, employment and international trade.The two main factors agreed by many to be the greatest challenge to business growth is restricted financial lending and late payment. The two go hand in hand. Banks will not lend money so where else can a business be funded ? For many it is the unfortunate supplier and it is the less vigilant or commercially aware supplier which suffers.
This is the point at which companies have to be aware of the other tools available to them. For new accounts a company credit check is essential, whilst these are historical they provide useful information. The use of other methods such as http://www.due2pay.co.uk/ , business debt collection and solicitor’s letters may seem extreme but are essential in this day and age. DUE2PAY’s approach to late payment takes the company credit check to a much needed area. Companies have been wanting a central register of late payers for a long time. With DUE2PAY a company can list a late payer and other members have sight of this information, simple.
Where late payment is traditionally one sided in favour of the late payer, DUE2PAY redresses the balance by giving the late payer the opportunity to flag up a reason for late payment of a specific invoice or invoices. All members have sight of this information and all members can contact the late payer or other members. Court action or solicitor’s letters do not offer this service. Debt recovery has now been taken to a new level with DUE2PAY.
A major factor for UK companies taking longer to pay invoices was the increase in interest rates. In times of high interest rates it was natural to look on suppliers as a cheap form of loan. Extending payment for 1 month means that you do not have to borrow and pay interest to a bank to fund that loan for 1 month. With banks tightening their belts it is harder to get loans and coupled with a reduction in interest rates the delaying of payment still continues as a method of managing cash flow.
Industry late payment figures have shocked industry observers who fear that late payment is likely to get worse with the rise in interest rates and the economy taking a downturn, factors that make retaining cash for as long as possible even more attractive. This level of late payment comes despite legislation phased in since 1998 that was designed to encourage better payment practice by allowing firms to claim interest on Invoices that were not paid on time.
The UK culture of late payment damages business, employment and international trade.The two main factors agreed by many to be the greatest challenge to business growth is restricted financial lending and late payment. The two go hand in hand. Banks will not lend money so where else can a business be funded ? For many it is the unfortunate supplier and it is the less vigilant or commercially aware supplier which suffers.
This is the point at which companies have to be aware of the other tools available to them. For new accounts a company credit check is essential, whilst these are historical they provide useful information. The use of other methods such as http://www.due2pay.co.uk/ , business debt collection and solicitor’s letters may seem extreme but are essential in this day and age. DUE2PAY’s approach to late payment takes the company credit check to a much needed area. Companies have been wanting a central register of late payers for a long time. With DUE2PAY a company can list a late payer and other members have sight of this information, simple.
Where late payment is traditionally one sided in favour of the late payer, DUE2PAY redresses the balance by giving the late payer the opportunity to flag up a reason for late payment of a specific invoice or invoices. All members have sight of this information and all members can contact the late payer or other members. Court action or solicitor’s letters do not offer this service. Debt recovery has now been taken to a new level with DUE2PAY.
Monday 10 November 2008
Join DUE2PAY now with free 60 day trial
Businesses are facing increasing problems with late invoice payments, bad debts and Debt Recovery. DUE2PAY is a website which encourages late payers to pay the bills they own. The view is that instead of the headache of court action or a solicitor’s letter, you can list a company as a late payer with www.due2pay.co.uk and share that information with other members. Dispensing with solicitor’s letters and court action. DUE2PAY can be thought of as a UK wide business club, bringing members together over the internet to discuss business in the same way that they would if they were members of a local club having breakfast meetings.
The success of local business clubs and networking is recognised by those who join them. Late payment is a common topic. In some industries is recognised that the longer you wait to chase a late invoice debt it is less likely the invoice will be paid. Add to this the interest you are paying out to fund the product or service supplied, the internal costs of employing someone to make the chasing phone calls, to write letters or the cost of taking legal action the overall cost is usually hidden. The warning signs are easily read but companies choose to take a positive point of view expecting to receive payment soon. However it is common to discover that your debtor is also a debtor to other companies. If you delay in recovering monies owed, your debtor may be wound up or made bankrupt before you get the money you are owed.
The government has introduced legislation allowing companies to add late payment interest into their invoicing structure. Take up has been slow and is considered to be an administrative obstacle for small businesses which just want to be paid for the goods or services supplied.
Using www.due2pay.co.uk will highlight to your customer that you expect payment. If he is doing the same with his other suppliers, they will soon find out through the site. In addition, other companies which he approaches will be forewarned with the site’s Watch List. This is a useful feature which allows members to list companies and as soon as that company is registered as a late payer they receive an email letting them know that their Watch List has been ‘triggered’.
DUE2PAY is up there with other traditional methods of business vetting such as business debt collection and company credit checks. It has an advantage of alerting members to things which are happening recently. The historical or traditional check methods should not be ignored as they are valuable indicators of how a company trades, their profitability and ability to weather hard times.
The success of local business clubs and networking is recognised by those who join them. Late payment is a common topic. In some industries is recognised that the longer you wait to chase a late invoice debt it is less likely the invoice will be paid. Add to this the interest you are paying out to fund the product or service supplied, the internal costs of employing someone to make the chasing phone calls, to write letters or the cost of taking legal action the overall cost is usually hidden. The warning signs are easily read but companies choose to take a positive point of view expecting to receive payment soon. However it is common to discover that your debtor is also a debtor to other companies. If you delay in recovering monies owed, your debtor may be wound up or made bankrupt before you get the money you are owed.
The government has introduced legislation allowing companies to add late payment interest into their invoicing structure. Take up has been slow and is considered to be an administrative obstacle for small businesses which just want to be paid for the goods or services supplied.
Using www.due2pay.co.uk will highlight to your customer that you expect payment. If he is doing the same with his other suppliers, they will soon find out through the site. In addition, other companies which he approaches will be forewarned with the site’s Watch List. This is a useful feature which allows members to list companies and as soon as that company is registered as a late payer they receive an email letting them know that their Watch List has been ‘triggered’.
DUE2PAY is up there with other traditional methods of business vetting such as business debt collection and company credit checks. It has an advantage of alerting members to things which are happening recently. The historical or traditional check methods should not be ignored as they are valuable indicators of how a company trades, their profitability and ability to weather hard times.
Monday 3 November 2008
Firms using www.due2pay.co.uk
1 in 10 Small Firms in danger of going under, a report from the RSA reveals that more than 500,000 small businesses could close if they do not get urgent help. 11% of the businesses surveyed said they can no longer afford to operate due to the credit crunch and global financial upheaval. The research was conducted in August, conditions since then have deteriorated more.
Firms are under pressure to maintain cash flow due to lack of credit , late payment, increases in costs and a down turn in consumer spending.
Many firms are having to shed staff, some of which have been with companies for many years and in some cases family businesses are shedding members of their own family. Small businesses employ nearly 60% of the private sector workforce.
Despite reassurances to industry, lending restrictions are compounding the problems caused by spiralling costs and payment problems. The government is urging businesses to make use of an EU fighting fund worth up to £4 billion. The high street banks are expected to lend out cheap cash loaned by the European Investment Bank on better terms than the current market rate. These loans are geared to help companies avoid the cash flow debt trap.
Debt recovery for small business is a major part of their lives, the importance of which has grown over the years to a point where now dedicated staff carry out business debt collection or it may be contracted out. The contracting out will go to companies specialising in reclaiming monies owed. These companies may offer simple services but also give advice, perform company credit check, monitor outstanding debts and provide reports on all involvements with debtors.
Smaller firms find it hard to get larger customers to keep to the agreed payment terms. Smaller suppliers rarely make a legal challenge to try to impose interest charges on late payments although they are quite legally able to do this.
Small firms are under pressure from all sides, the banks which lend money and also from larger businesses which they supply. The Credit Management Research Centre (CMRC) at Leeds University Business School has found that companies keen to hang on to their cash as long as possible, are taking longer to settle their bills - particularly if they owe money to small firms. The delay in paying SMEs has worsened since the findings of their report which focused on the second quarter of this year.
So the result of the bank either increasing their interest rates and the buyers taking longer to pay gives companies cash flow problems. It is usually when it is too late that SMEs pay attention to cash flow and turn to debt recovery methods. They are so busy managing other parts of their business that they take their eye off the ball. For this reason, many companies are in danger of going bankrupt even if they have a healthy business
Firms are under pressure to maintain cash flow due to lack of credit , late payment, increases in costs and a down turn in consumer spending.
Many firms are having to shed staff, some of which have been with companies for many years and in some cases family businesses are shedding members of their own family. Small businesses employ nearly 60% of the private sector workforce.
Despite reassurances to industry, lending restrictions are compounding the problems caused by spiralling costs and payment problems. The government is urging businesses to make use of an EU fighting fund worth up to £4 billion. The high street banks are expected to lend out cheap cash loaned by the European Investment Bank on better terms than the current market rate. These loans are geared to help companies avoid the cash flow debt trap.
Debt recovery for small business is a major part of their lives, the importance of which has grown over the years to a point where now dedicated staff carry out business debt collection or it may be contracted out. The contracting out will go to companies specialising in reclaiming monies owed. These companies may offer simple services but also give advice, perform company credit check, monitor outstanding debts and provide reports on all involvements with debtors.
Smaller firms find it hard to get larger customers to keep to the agreed payment terms. Smaller suppliers rarely make a legal challenge to try to impose interest charges on late payments although they are quite legally able to do this.
Small firms are under pressure from all sides, the banks which lend money and also from larger businesses which they supply. The Credit Management Research Centre (CMRC) at Leeds University Business School has found that companies keen to hang on to their cash as long as possible, are taking longer to settle their bills - particularly if they owe money to small firms. The delay in paying SMEs has worsened since the findings of their report which focused on the second quarter of this year.
So the result of the bank either increasing their interest rates and the buyers taking longer to pay gives companies cash flow problems. It is usually when it is too late that SMEs pay attention to cash flow and turn to debt recovery methods. They are so busy managing other parts of their business that they take their eye off the ball. For this reason, many companies are in danger of going bankrupt even if they have a healthy business
Monday 27 October 2008
DUE2PAY helps get invoices paid on time
Smaller firms often find it hard to force their larger customers to keep to agreed payment terms. Smaller suppliers rarely make a legal challenge to try to impose interest charges on late payments although they are quite legally able to do this.
So the result of banks either increasing their interest rates and the buyers taking longer to pay gives companies cash flow problems. It is usually when it is too late that SMEs pay attention to cash flow. They are so busy managing other parts of their business that they take their eye off the ball. For this reason, many companies are in danger of going bankrupt even if they have a healthy business
When cash flow dries up, a business is left drowning, the game is over ! A company credit check can be made during trading with a company as well as being part of the decision making process of deciding if you should trade with a new business. Don’t forget that a business credit check is historical and the information can be over a year old.
http://www.due2pay.co.uk/ is offering a different type of service to UK limited companies. Their web site will take details of late payments, they will email and fax the customer to remind them that monies owed is due. If the invoice remains unpaid, other members will have site of the fact (the amount of the invoice is not shown). The other members will then be able to contact the supplier and the customer if they wish. The Watch List of DUE2PAY is proving popular. Members can create a WATCHLIST of companies which they want to keep an eye on. As soon as a company is listed as a late payer, members with that company on their watch list will receive an email telling them that that a company they are watching has been listed on DUE2PAY.
It is common to find that your debtor is also in debt to other companies, if you delay in addressing any late payments, the debtor may be wound up or go bankrupt before you have the chance to recover monies owed to you.
Liquidity is the key to survival today. There are several methods of managing debt recovery of overdue accounts, a useful way is to factor invoices though the percentage take of those offering the service may be considered high especially in low margin businesses. Solicitor’s letters are almost one off methods which still rely on you and the solicitor to monitor accounts. Some companies are offering a debt collection service for a monthly fee, they will chase your invoices for you.
Managing working capital will give any business with the cash resources to contine to trade.
A bad debt uses valuable internal company resources in chasing the debt.
Less considered methods of improving liquidity is timing of salary payment to the receipt of guaranteed payment of suppliers. Increasing order size from your own suppliers negotiated with a decrease in price and extended payment terms (be careful of overstocking) , taking stock from suppliers and paying for it is when it is used (your supplier is effectively using you as a storage facility), reducing your own stock levels and having suppliers deliver smaller amounts just when you need it.
So the result of banks either increasing their interest rates and the buyers taking longer to pay gives companies cash flow problems. It is usually when it is too late that SMEs pay attention to cash flow. They are so busy managing other parts of their business that they take their eye off the ball. For this reason, many companies are in danger of going bankrupt even if they have a healthy business
When cash flow dries up, a business is left drowning, the game is over ! A company credit check can be made during trading with a company as well as being part of the decision making process of deciding if you should trade with a new business. Don’t forget that a business credit check is historical and the information can be over a year old.
http://www.due2pay.co.uk/ is offering a different type of service to UK limited companies. Their web site will take details of late payments, they will email and fax the customer to remind them that monies owed is due. If the invoice remains unpaid, other members will have site of the fact (the amount of the invoice is not shown). The other members will then be able to contact the supplier and the customer if they wish. The Watch List of DUE2PAY is proving popular. Members can create a WATCHLIST of companies which they want to keep an eye on. As soon as a company is listed as a late payer, members with that company on their watch list will receive an email telling them that that a company they are watching has been listed on DUE2PAY.
It is common to find that your debtor is also in debt to other companies, if you delay in addressing any late payments, the debtor may be wound up or go bankrupt before you have the chance to recover monies owed to you.
Liquidity is the key to survival today. There are several methods of managing debt recovery of overdue accounts, a useful way is to factor invoices though the percentage take of those offering the service may be considered high especially in low margin businesses. Solicitor’s letters are almost one off methods which still rely on you and the solicitor to monitor accounts. Some companies are offering a debt collection service for a monthly fee, they will chase your invoices for you.
Managing working capital will give any business with the cash resources to contine to trade.
A bad debt uses valuable internal company resources in chasing the debt.
Less considered methods of improving liquidity is timing of salary payment to the receipt of guaranteed payment of suppliers. Increasing order size from your own suppliers negotiated with a decrease in price and extended payment terms (be careful of overstocking) , taking stock from suppliers and paying for it is when it is used (your supplier is effectively using you as a storage facility), reducing your own stock levels and having suppliers deliver smaller amounts just when you need it.
Thursday 23 October 2008
Late Business Payment
From www.due2pay.co.uk, the easy way to manage late payment. Follow the link to find a 60 day free trial and a low monthly membership for features to help your business.
The business world is a two way affair between Customers and Suppliers. Whilst things look gloomy on the payment front, customers will look at legitimate ways to delay payment.
Legitimate ? ? Yes, they may ask for extended terms. They will want to do this to create a buffer in their business. They don't want to be subjected to business debt collection agencies knocking on their door. They don't want to have a company credit check show them as a bad risk.
Banks have been concentrating on quantity of loans and will now look closely at the quality of loans with their accounts. A shift may take place to convert interest only loans into other types certainly ones which show payment to the capital. Banks will not be too concerned about losing customers who don’t like it as other banks will not want to pick up the business.
The credit cycle is tightening, it’s a knock on effect.
One business starts to tighten its terms and it cascades right down the supply chain.
Make sure you and your staff are on the watch out for the tell tale signs of late payment. These are numerous, amongst them are late delivery of cheques, bouncing cheques and excuses over the telephone.
Look at your existing businesses now, any which are showing signs of slowing their payment should be monitored regularly. Overdue Accounts which are allowed to stay that way are difficult to turn round. Don’t forget that if customer has problems now in paying outstanding debts, then it will be hard to catch up unless his customers start to pay monies owed to him on time.
Debt recovery from a company on the slide is a hard thing especially if they have been with you for a long time. Tough decisions need to be made especially if you have developed close personal times with the key players.
New customers need to be subjected to a normal company credit check there is no harm in vetting them using other industry sources. Information can be gleaned from Companies House and any of the other credit referencing companies which use their information.
The business world is a two way affair between Customers and Suppliers. Whilst things look gloomy on the payment front, customers will look at legitimate ways to delay payment.
Legitimate ? ? Yes, they may ask for extended terms. They will want to do this to create a buffer in their business. They don't want to be subjected to business debt collection agencies knocking on their door. They don't want to have a company credit check show them as a bad risk.
Banks have been concentrating on quantity of loans and will now look closely at the quality of loans with their accounts. A shift may take place to convert interest only loans into other types certainly ones which show payment to the capital. Banks will not be too concerned about losing customers who don’t like it as other banks will not want to pick up the business.
The credit cycle is tightening, it’s a knock on effect.
One business starts to tighten its terms and it cascades right down the supply chain.
Make sure you and your staff are on the watch out for the tell tale signs of late payment. These are numerous, amongst them are late delivery of cheques, bouncing cheques and excuses over the telephone.
Look at your existing businesses now, any which are showing signs of slowing their payment should be monitored regularly. Overdue Accounts which are allowed to stay that way are difficult to turn round. Don’t forget that if customer has problems now in paying outstanding debts, then it will be hard to catch up unless his customers start to pay monies owed to him on time.
Debt recovery from a company on the slide is a hard thing especially if they have been with you for a long time. Tough decisions need to be made especially if you have developed close personal times with the key players.
New customers need to be subjected to a normal company credit check there is no harm in vetting them using other industry sources. Information can be gleaned from Companies House and any of the other credit referencing companies which use their information.
Tuesday 14 October 2008
More Features than a Solicitor's Letter
DUE2PAY's services have been described as being more punchy with more features than a Solicitor's Letter.
Originally conceived as a bolt on to exisiting credit referencing and credit checking, DUE2PAY is an important tool for Companies which want to keep track of their customers which may start to pay their bills late. It is just as important to check on companies you may wish to do business with.
Stop a moment to think how much time and money is spent on your phone calls, faxes, visits and solicitor letters. Just one late payer can cost you well over £100 which is near enough the annual cost of being a member of DUE2PAY.
Vetting of new customers can be a slow tedious affair.
Recovery of monies owed and its collection can be handed over to a third party though this still involves the supplier in a lot of work. There is nowhere else that you can turn to find up to date information on Late Payers.
As long as there is no dispute over your invoices or transactions, you can let your supplier know that you want your money on time. DUE2PAY's simple interface allows you to take control.
If you do not have any overdue accounts, you can still join up and use the Watch List feature which will keep you informed whenever a company is listed as a late payer.
Originally conceived as a bolt on to exisiting credit referencing and credit checking, DUE2PAY is an important tool for Companies which want to keep track of their customers which may start to pay their bills late. It is just as important to check on companies you may wish to do business with.
Stop a moment to think how much time and money is spent on your phone calls, faxes, visits and solicitor letters. Just one late payer can cost you well over £100 which is near enough the annual cost of being a member of DUE2PAY.
Vetting of new customers can be a slow tedious affair.
Recovery of monies owed and its collection can be handed over to a third party though this still involves the supplier in a lot of work. There is nowhere else that you can turn to find up to date information on Late Payers.
As long as there is no dispute over your invoices or transactions, you can let your supplier know that you want your money on time. DUE2PAY's simple interface allows you to take control.
If you do not have any overdue accounts, you can still join up and use the Watch List feature which will keep you informed whenever a company is listed as a late payer.
Friday 26 September 2008
Innovative low cost Debt Management
A different approach to debt management is seen in due2pay.co.uk.
This company brings an innovative approach to bring suppliers together in order to tackle the issue of late payment debt in industry. It also gives the customer a right to reply. Credit ratings with traditional methods are accepted business management tools.
By opening up the area of late payment and allowing the process to be more visible it is hoped that ethically run businesses will not feel alone. The credit crunch is forcing more companies to watch their costs. Some take the view that it is acceptable to delay payment of invoices as a way of protecting their own business, they have no qualms or feel have no choice but to be a debtor. Some companies are advising suppliers that they are revising the terms on which they do business and extending payment terms on existing invoices. The knock on effect of this is huge. A company taking an extra week credit is in fact enforcing a price decrease. This in turn helps their cash flow, normal business vetting will not bring this to light.
Some small companies are being hit doubly hard.
They are having suppliers increase prices and their customers are extending payment terms without negotiation or demanding price reductions.
The effect of these two demands creates a huge on cost for the supplier.
This company brings an innovative approach to bring suppliers together in order to tackle the issue of late payment debt in industry. It also gives the customer a right to reply. Credit ratings with traditional methods are accepted business management tools.
By opening up the area of late payment and allowing the process to be more visible it is hoped that ethically run businesses will not feel alone. The credit crunch is forcing more companies to watch their costs. Some take the view that it is acceptable to delay payment of invoices as a way of protecting their own business, they have no qualms or feel have no choice but to be a debtor. Some companies are advising suppliers that they are revising the terms on which they do business and extending payment terms on existing invoices. The knock on effect of this is huge. A company taking an extra week credit is in fact enforcing a price decrease. This in turn helps their cash flow, normal business vetting will not bring this to light.
Some small companies are being hit doubly hard.
They are having suppliers increase prices and their customers are extending payment terms without negotiation or demanding price reductions.
The effect of these two demands creates a huge on cost for the supplier.
Thursday 4 September 2008
The Business Credit Crunch
Things just seem to be getting a little tough for Businesses at the moment. Major Banks are reporting a growing number of British firms have fallen behind with their repayments. This has led to larger companies getting more aggressive and
1) forcing extended credit terms on suppliers
2) demanding discounts on already agreed prices
3) demanding settlement discounts for just paying on time
4) Imposing retrospective rebates for goods already delivered.
5) Using late payment as an easy way of funding their own cash flows.
These are extremely worrying developments for the whole business community.
It is now more important than ever for small businesses to protect themselves and ensure invoices are paid on time.This will help them avoid potential cash flow problems, which, if not addressed quickly could result in the ultimate closure of their business.
A new internet based service to help victims of late payments has been launched by DUE2PAY LIMITED which has been specifically designed to help these companies recover their overdue invoices, without the need to go to court, also to share information on companies identified as late payers by fellow members, giving them the opportunity to make more informed decisions in dealing with a particular company.
The service is being offered free on a 60 day trial, after which, normal membership fees will apply. If you are interested please contact DUE2PAY.CO.UK
1) forcing extended credit terms on suppliers
2) demanding discounts on already agreed prices
3) demanding settlement discounts for just paying on time
4) Imposing retrospective rebates for goods already delivered.
5) Using late payment as an easy way of funding their own cash flows.
These are extremely worrying developments for the whole business community.
It is now more important than ever for small businesses to protect themselves and ensure invoices are paid on time.This will help them avoid potential cash flow problems, which, if not addressed quickly could result in the ultimate closure of their business.
A new internet based service to help victims of late payments has been launched by DUE2PAY LIMITED which has been specifically designed to help these companies recover their overdue invoices, without the need to go to court, also to share information on companies identified as late payers by fellow members, giving them the opportunity to make more informed decisions in dealing with a particular company.
The service is being offered free on a 60 day trial, after which, normal membership fees will apply. If you are interested please contact DUE2PAY.CO.UK
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