Are late payments to small business simply a crisis according to the political elite or is there something more complex behind this? Satago, a credit control firm, is of the opinion the truth lies heavily on the latter. Poor credit control systems are to blame bearing in mind many late payments aren’t actually malicious.
Although the ruling political party have intentions for small business conciliation service specifically to deal with disputes over late payment are welcome, small businesses need to get more literate in credit control.
According to Satago, their new risk feature powered by the help of credit rating group Experian is the way forward.
Users of this platform have an advantage of a general glance over their clients company’s credit rating.The feature integrates into the users accounts, classify clients and outstanding debts into risk categories. Information on how fast clients pay and their propensity of late payment can also be made available to the user.
Legislation can also assist with late payment. Many SME’S have forgotten or have little time to pursue the legal avenue. Under the Late Payments of Commercial Debts Act 1998, businesses can charge to one-off compensation and can also charge statutory interest which currently stands at 8.5%.
Conclusion, it may as well be easier to maintain a healthy working relationship with your clients…
