A headline-grabbing report from the Forum of Private Business and Graydon reveals that formal credit control processes are in place at fewer than half of the UK's small businesses.
The survey looked at 500 companies across the UK, and just 44% said they had formal credit control procedures to fall back on if they are not paid promptly by debtors. However, many others admitted to making use of a spur-of-the-moment approach to payments, with 16% juggling payments as they go along and 38% mixing formal credit control processes with informal payment-chasing.
Credit control is an important part of running any business effectively, but for small-business owners it can have an even greater significance.
When you rely on a regular income to cover your outgoings, overheads and employee wages, any delay in payments from clients can have a severe impact on your company cash flow.
Easter weekend is traditionally a time to think about finances, with Maundy Thursday in particular famous for its centuries-old ceremony in which the British monarch gives alms to specially selected individuals.
But this year, a new CIFAS report highlights the prevalence of financial fraud throughout the UK, and hints at why making use of professional credit control and debt recovery services can help your company avoid losing money to fraudulent transactions.
Cash flow is king. Profit is sanity. Turnover is vanity. Cash flow is the lifeblood of every business and ensuring it flows freely is essential. Read a sample of our free guide to credit control below, authored by our very own Sid Home MICM and request a copy of the full and unabridged version free.
Following on from the success of our free Late Payment iCalc for iPhone, in November 2010 a BlackBerry App was released. This free app brings exactly the same functionality to users of BlackBerry handsets.
In May 2010 Safe Collections became the first company to release a free iPhone App to help UK business owners. The app makes it easy to calculate both the late payment costs and interest on any overdue invoice.