The much reported ‘payment culture’ in the UK sees more-and-more businesses highlighting late payment as their biggest commercial challenge and a significant threat to their trading success. With accounts receivable (AR) and accounts payable (AP) having separate and conflicting objectives, is this surprising? No, because with its debtors paying later and later, firms will pay creditor invoices late to balance cash flow.
Credit reference agencies provide you with information about your buyers; they even give you a credit opinion, and sometimes payment data, all designed to advise and alert you of risk. Sadly, when your buyer’s key account fails to pay them on time, your invoice may drop down the priority list for payment too. Now, despite your best endeavours, your cash flow suffers, and your risk increases.
How long do you wait for payment? Evidence shows that the chances of being paid decrease over time; at 90 days past due you are 50% less likely to be paid. What are your options?
Referring overdue accounts to a third party is one such option, and it comes with benefits. The benefits include extra resource; dedicated collection effort; time to focus on other tasks; free-of-charge debt recovery; educates your buyer to pay on time in future, and improves your cash flow. For your UK business accounts, we add our collection costs, and interest, to the sum outstanding using the Late Payment Act, recovering these 50% of the time.
We are proud of the client loyalty that we enjoy, but we never take it for granted, and here are a few of the ways that we strive to keep this commitment:
24/7 Online Reporting
As an STA debt collection client, you will have access to ‘Your Debts Online’ (YDO).
YDO gives you a transparent view of what we are doing with the accounts you place with us for collection. It’s a secure password-protected site where you can see our overall collection success; the status of every debt including your own collector’s notes, your invoices and statements, and the charges made on each and every account placed.