So it is that time of year again, businesses are scrambling to get things finished for the big Christmas shut down and, for a few days at least, you can leave your problems in the office - no chasing invoices, no worrying about cash flow, no playing the diplomat with awkward suppliers or clients.
But at the risk of dampening the festive spirits, it is only a temporary respite. Those payments you are struggling to get finalised will still be outstanding come January. But on the other hand, the New Year is always a great time to make a fresh start. So as our Christmas present to you, here is our 12-step guide to what you can do to maximise your chances of getting paid on time in 2019.
The UK’s supermarket watchdog has published its annual grocery code compliance list, naming and shaming supermarkets for poor treatment of suppliers and other breaches of the industry code of practice.The UK’s supermarket watchdog has published its annual grocery code compliance list, naming and shaming supermarkets for poor treatment of suppliers and other breaches of the industry code of practice.
This year, Asda has secured the dubious honour of having the poorest relationship with its suppliers, leapfrogging its West Yorkshire rival Morrisons which topped the shame list last year. Iceland, meanwhile, was ranked worst for overall compliance with the Groceries Supply Code of Practice in the past year.
Vertu Corporation Limited, the well-known British manufacturer of luxury smartphones, has finally filed for insolvency after being passed between owners since 2012.
The company was known for its spangly, jewel-encrusted handsets which came with equally ludicrous price tags. Its entry-level handset cost a cool £6,500; prices stretched to more than £250,000 for the garish Vertu Signature Cobra.
Having to deal with invoices that are not paid on time is stressful for any business owner. Late payments can seriously disrupt cash flow, take precious time to sort out, and can sour relationships with clients.
Most late payments are one offs and arise from perfectly understandable circumstances. With a little dialogue and a little patience, most can be resolved amicably. But what about that small minority of clients who persistently pay late?
Work has stopped on the restoration of Lancaster Castle after the company working on it was placed into administration. York based William Anelay Ltd, one of Britain’s oldest heritage restoration and construction companies, had been working on a programme of work to repair 70 per cent of the castle’s roofs and deal with weather damage to the fabric of the 1,000-year-old Grade II Listed building.
News that one of the oldest agricultural firms in Lancashire has entered administration has been met with shock and dismay. Riley Brothers International Haulage Ltd, the most recent iteration of a company with a history stretching back more than a century, entered administration on the 18th of December 2015 with the loss of more than 130 jobs.
Although many small and medium-sized businesses know the importance of background credit checks on new customers, a lack of familiarity with the process of actually carrying out a credit check can lead many to overlook this crucial step in their risk management.
Safe Collections have teamed up with credit check specialists Experian to make it easy and affordable for freelancers and fledgling businesses to begin credit checking new customers.
Risk is an unavoidable part of business, particularly if you provide credit to your clients - even in the sense of invoicing for work done only once it has been delivered, let alone more complex credit arrangements that involve the lending of money.
The new year is always a good time to take a fresh look at things; for many companies it is the start of a new financial year too, while those whose accounting is aligned with the tax year have the first quarter of the new calendar year to put processes in place.
We always say that in good credit control, prevention is better than cure - collections and recovery action should be for the bad debts you didn't see coming, not the ones you did.
But how do you know who's going to pay on time, and who's not going to pay at all?
If you've worked in credit control for long enough, it will be instinctive, a kind of sixth sense based on the myriad different factors that contribute towards a company's risk profile.
Dealing with an Insolvent client can kill a profitable business. If your client becomes insolvent it will have a significant knock-on effect, that will impact on your company cashflow, leaving you as a creditor with unpaid invoices that will likely never be paid.
In 2015, more than 100,000 UK businesses found themselves as creditors to an insolvent business, and many will have found their cash flow at serious risk as a result. Any business, irrespective of size, is at risk if their client becomes insolvent but for freelancers and micro-businesses these risks are magnified.