Reports that Canadian subscription box supplier Nerd Block has gone to the wall is bad news for an army of suppliers waiting on months of unpaid invoices.

Subscription boxes are big business, and the market is growing by the day. With the success of major brands such as Loot Crate charging £20 or more for a monthly box of goodies delivered to your door, similar companies have sprung up around the world.

New York publishing house Condé Nast has reportedly come up with a novel solution to the tricky issue of ensuring its contributors get paid on time.

As reported here, the magazine empire behind global titles such as Vogue, Vanity Fair, GQ and Tatler has decided to offer freelance writers an offer they cannot refuse - Condé Nast has very generously offered to pay invoices early, in return for a small reduction in the payment. Must be to cover all of the extra admin involved.

Published in Credit Control

A fine example of how not to carry out debt collection appeared in Singapore newspapers this week after three men were jailed for their part in a farcical incident.

Andra Chew Keng Leng, 40, Lim Boon Tiong, 43, and David Tan, 37, all employees of a debt recovery firm called Double Ace Associates, were sent with three colleagues to collect a debt from a food stall owner at Singapore’s Funan Digitalife Mall.

In the current political climate, you can hardly move for hearing talk about borders, trade agreements, slamming shut doors and opening the windows of opportunity.

But let’s face it, for many in business, such talk is a mere distraction. Money talks, and the world is just one big open market of opportunity. Wherever a deal can be done or an investment can be made, business will follow.

Irish courts are experiencing sharp spike in the number of cases linked to international debt collection. A recent flurry of media coverage has brought attention to the operations of so-called ‘vulture funds’ as they apparently step up debt recovery in Ireland.

Vulture funds are financial organisations such as investment trusts, private equity firms and hedge funds which look for opportunities to make a profit from debt collection. They buy up debts at a discounted rate from organisations which no longer wish to be liable for them and then seek to recover more than they paid.

The scourge of unpaid invoices threatening the survival of small and medium sized businesses is an international problem. In Australia, things have got so bad that some companies are turning to desperate debt collection methods to try to recover money owed to them.

As a new report revealed that the average Australian business is typically owed £23,000 in outstanding invoices, one industry spokesman suggested hard pressed firms are ready to return to an old and infamous solution - biker gangs.

When Tesco was exposed for its long payment delays, it exposed an ugly trend among large businesses: delay, delay and delay some more, until your supplier is on its knees. And while the supermarket provided an extreme example of this unethical practice, a shockingly large percentage of global businesses see late payment to suppliers as a “fact of life”.

Published in Credit Control

When you work with a company in the same country, you have a common legal framework that links you and its a relatively simple process to track down errant debtors if payment problems occur. Dealing with clients overseas is more hazardous, and the risks can catch out many small businesses. Here are some practical tips that can prevent significant problems when dealing with overseas clients.

Formula 1 tyre supplier Pirelli took a hard line in Hungary by invoking a prompt payment policy that left Lotus with no tyres as the first practice session approached on the Friday.

Payments are due on a quarterly basis and, according to reports in the Telegraph and other national newspapers, Lotus owed about £350,000 for three months' worth of wheels.

Published in Credit Control

Greece's government has imposed capital controls and closed banks until after a July 5 referendum on a deal with European creditors.

The following information is provided for any company concerned about customers based in Greece and the impact the capital controls will have on their cashflow in the short term.  This guide covers basic credit control information, if you have customers already behind on payment arrangements allowing further credit is at best ill-advised.

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