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How businesses can avoid late payments!

Late payments are an increasing problem for companies of all sizes, from the sole trader to multinational enterprises. It seems rarely a day goes by without a news story of a company having problems related to cashflow. Indeed, each year across Europe thousands of small and medium-sized enterprises (SMEs) go bankrupt waiting for their invoices to be paid.

Money tied up in customer credit puts pressure on even the most profitable business. Offering credit is an often-used tool for leveraging sales, but without suitable procedures in place to ensure prompt payment cashflow issues can quickly become unmanageable.

Manually chasing late payments used to be the only solution. This could be an additional strain on resources in terms of time taken and the added expense of an accounts person chasing. This would only be as effective as the person tasked with the job. Often it would be a reactive process only concentrating on clients in arrears the longest.  In some instances, the customers called would only be those that the person doing the contacting thought wouldn’t give them a difficult time, which is certainly not the best way to ensure a reduction in debt.

To ensure that all debtors are proactively contacted in a timely manner, implement an automated process and say goodbye to:

• Exceeded payment terms • Re active debt chasing
• Time consuming manual admin
• Debt caused by delayed payments
• Withheld money due to unresolved disputes
• Inconsistent customer communications

The leading automated solution to help reduce late payments is Credit Hound by Draycir. Fully integrated to Sage 50c and Sage 200c, it significantly reduces administrative tasks and instantly shows you how much you are owed and who should be chased. The time saved with administrative costs alone will quickly cover the outlay of implementing Credit Hound, allowing your Credit Control team to have all the information they need at their fingertips; allowing more time for your team to actually do their job instead of wasting time working out who has your money!

Having what was previously a debt will now be available as cash in your account…….and can now be used to grow your company! You will be amazed what a difference even shaving a few days off your average time to bank will make to your company cashflow.

For further information on Credit Hound click here

If you would like to discuss how you can improve your cashflow with Credit Hound in more detail, please do not hesitate to contact us on 01332 587515 or sagesales@smithcooper.co.uk

 

 

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