In this blogpost the team at Commercial Domestic Investigations want to look back at when we made the news in 2014. As well as Commercial Domestic Investigations featuring in The Times and The Guardian. We also featured on the Reuters news service.
The Reuter’s article talked about why prevention is always better than the cure when it comes to credit checking. The article quoted figures which suggested that as of April 2014 £55 billion of outstanding invoices were owed to British SMEs. How do companies go about tackling this mountain of outstanding debt?
The best way to stop bad debt happening to your company in the first place is to invest in a credit reporting service that will identify those business customers who have a history of non-payment or slow payment.
Being informed about the credit history of your customers allows you to make an informed decision about whether to enter a business relationship with them, this can prevent debt and prevent disagreements further down the line.
Our spokesperson, Natalie Barron explained to Reuters: “As a start-up, undoubtedly the biggest issue people have to get to grips with quickly is cashflow. Time and time again, we hear of late payments, ignored payment terms and sometimes, non-payment altogether. It’s something all businesses battle with and can easily send small businesses under if it’s not managed precisely.”
Good for the money
Natalie continues: “We’ve seen clients relying on their own credit cards and in turn, delaying their own payments to suppliers because customers haven’t paid when they said they would. The knock-on effect is huge. First of all, make sure you understand your customer’s payment terms – there is evidence of some larger organisations exploiting their supply chain and extending payment terms unfairly. So if you’re an SME taking on a large customer, think carefully as to whether you can afford to fund the payment gap – my advice would be don’t take the business. Dispute any unreasonable payment terms from the very outset if you’re unsure, before drawing up the contract. Always, always, get a contract signed or something in writing before you start work, to protect you legally.
“Good housekeeping is the obvious. Invoice promptly and accurately and get to know customers’ payment systems and personnel. If this isn’t your strong point, commission someone good to do it for you. It’s vital to the long term success of your business.”
If you’re a new or established business and you’re interested in a credit reporting service please contact Commercial Domestic Investigations.
ABOUT COMMERCIAL & DOMESTIC INVESTIGATIONS
Commercial & Domestic Investigations are regarded within the debt collection and credit control industry as one of the best credit management companies in the UK. Established in 1988 to support and service all sizes of companies in the field of Credit Management.
Primarily our clients use our automated Debt Collection Services, but over the last eighteen years clients requirements have changed dramatically, something Commercial & Domestic Investigations has addressed.
We now boast a national client base in excess of 30,000 companies. Commercial & Domestic Investigations has grown by listening to clients’ requirements and adapting our services to meet all companies’ needs from Sole Traders, SMES, Ltd and Plcs. Please contact us on 08444 159200 for more information.