........describe DUE2PAY a must have business membership for all Limited Companies as necessary to financial well being as 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.
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Tips for getting late payments paid earlier or on time
Don’t listen to the excuses
You already know most of them, “Can you resend the invoice”, “it’s passed
for payment” and ‘the cheque is in the post’. Get invoices paid directly
into your account. Your customer can not themn use the excuse that the cheque
may be lost or that it is waiting for signature. You can also list a late payer on sites which offer business debt collection services, websites which are cheap and cost effective.
Work at it
Don’t think that businesses will pay you on time. You need to build
relationships with people who hold the purse strings in companies which are
slow in paying. Phone them, talk to them, smile on the phone to them, get them
on your side. Be like a rat up a drain pipe and pester them in a nice way.
Before you know it you will be the first to be paid. A phone call in
advance of the payment date confirming that you will receive payment puts your
contact on the spot and he might not want to let you down. Paying direct into
your bank is good, meet with your customers and press them into this
Ask for interest and ask for prompt payment
It is possible and legal to ask for interest on late paid invoices.
Encourage prompt payment, if your pricing allows , hard in today’s climate,
offer a prompt payment discount and link it in with Bacs electronic payment.
You will see a positive cash flow with money going into your account quickly.
Not waiting for money to clear means that you can use it immediately and don’t
have to rely on costly loans.
Do as you ask
Don’t get a bad reputation yourself as a bad payer news travels fast so pay
your suppliers on time.
Is a business a bad risk ?
Check them out through debt recovery companies or associations they may be in, check out Companies
House which can provide reports on line to you. Prevent risk by doing a credit
risk check on all new potential customers. risk by performing a credit
check on all new customers. Beware of companies which give may give
referees which provide a big proportion of their supplies, ask what percentage
they are responsible for. That supplier may be paid on time every month because
not to do so could influence deliveries. Business debt collection is hard, one needs to be tough to make it work.
Internal Cost of Late Payment
Some companies are paying for dedicated staff to chase late payment others are not so fortunate. On average the internal cost for those not able to afford dedicated staff can be up to 20 lost working days per year.
More and more businesses are finding that they are spending more on debt recovery collection than ever before. Those companies which don't chase late payment find themselves getting deeper into debt and possibly closing when they failed to pick up on the fact that a customer was on it's last legsThe cost of funding staff to chase late payment is spiralling.
Is a business a bad risk ?
Beware of companies which give may give referees which provide a big
proportion of their supplies, ask what percentage they are responsible
for.Check them out through any associations they may be in, check out Companies House which can provide reports on line to you. Prevent risk by doing a credit check on all new potential customers. risk by performing a credit check on all new customers. That supplier may be paid on time every month because not to do so could influence deliveries.
Work at it
Don’t think that businesses will pay you on time. You need to build
relationships with people who hold the purse strings in companies which
are slow in paying. Phone them, talk to them, smile on the phone to
them, get them on your side. Be like a rat up a drain pipe and pester
them in a nice way. Before you know it you will be the first to be
paid. A phone call in advance of the payment date confirming that you
will receive payment puts your contact on the spot and he might not
want to let you down. Paying direct into your bank is good, meet with
your customers and press them into this.
Don’t listen to the excuses
You already know most of them, “Can you resend the invoice”, “it’s
passed for payment” and ‘the cheque is in the post’. Get invoices paid
directly into your account. Your customer can not themn use the excuse
that the cheque may be lost or that it is waiting for signature.
Ask for interest and ask for prompt payment
It is possible and legal to ask for interest on late paid invoices.
Encourage prompt payment, if your pricing allows , hard in today’s climate, offer a prompt payment discount and link it in with Bacs electronic payment. Threaten to put the matter in the hands of professional debt collection agencies. You will see a positive cash flow with money going into your account quickly. Not waiting for money to clear means that you can use it immediately and don’t have to rely on costly loans.
Do as you ask
Don’t get a bad reputation yourself as a bad payer news travels fast so pay your suppliers on time.
