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.
Sunday 23 November 2008
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
Subscribe to:
Posts (Atom)