2 posts tagged “credit crunch”

A different approach to debt management is seen in due2pay.co.uk.
This company brings an innovative approach to bring suppliers together 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.

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