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.