1 post tagged “business debt”

Major Banks are reporting a growing number of British firms are falling behind with their repayments. Cash is in short supply. There is a knock on effect within the business world which has led to larger companies getting more aggressive giving problems for their suppliers.

Tactics used include :

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.

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.
They need to continue to use rigorous credit checks, alongside ongoing monitoring of the financial status of their customers and suppliers. By harnessing the power of the latest risk management solutions, firms can minimise the threat of bad debt and secure the future of their business.

The knock on effect is a downward spiral within the business community, everyone starts to  struggle as customers increasingly fall behind with payments, sometimes up to several months. Late payments can be a matter of life and death for smaller businesses.

The debt recovery industry has blossomed in recent years, collection of monies owed can be handed to different agencies which are skilled in credit  control with slow payers. Business debt collection is a necessary part of worldwide business today. Businesses are being urged to be more diligent in carrying out ratings, checking references not only with new accounts but also on their current customer base.

A new internet based service to help victims of late payments has been launched by DUE2PAY LIMITED which has been specifically designed to help 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