A tactical approach – Island Trade Window Supplies
We’ve all heard the excuses: I just need one more week; my customers haven’t paid me on time; the cheque is in the post; I didn’t receive the invoice.
Of course, sometimes they’re honest and valid reasons and payment will indeed be forthcoming, but what do you do when the money continually doesn’t materialise?
Commercial debt collection agencies are proven at understanding the set of circumstances that are preventing your customer from paying and excel at devising a strategy to recover what you are owed as quickly as possible.
Some situations require a sympathetic approach, others one of persistence, but Hilton-Baird Collection Services recognised that a customer of Island Trade Window Supplies needed a gentle reminder about how much his debt was increasing month on month under the Late Payment of Commercial Debts (Interest) Act. Ultimately, this was enough in order to encourage him to open his cheque book.
The initial task for Hilton-Baird was to track down the customer who had become extremely elusive. Using all the tools at their disposal, the team located the customer and began a frank dialogue.
The Late Payment of Commercial Debts (Interest) Act 1998 declares that a business is able to charge interest on overdue invoices and, as a result, this particular debt was now worth an extra £300. And with this figure rising by the day, the customer’s renewed sense of urgency to pay the debt was understandable as he proceeded to settle the original invoice amount on his credit card.
Although Island Trade Window Supplies opted to waive the full late payment interest charge for a full and final settlement payment, this case serves as a timely reminder of how this piece of legislation can effectively be used as a late payment deterrent.
Simply referring to this Act on all of your invoicing and correspondence can prompt a customer that may be tempted to delay payment beyond terms not to, with a minimum compensation fee of £40 entitled to be charged if it is just one day late.
To see if we could help your business get paid sooner, contact us on 0800 9774848 or email@example.com. Alternatively get a quick quote to find out what we’d charge should we successfully recover your unpaid invoices.