Accy software vendor adds debtor auto hassle
Auto-chasing of late payers
Small business accountancy provider KashFlow is extending its platform with Getting-Paid, an online service which automatically chases slow payers.
It sends reminders to customers which gradually increase in severity until the invoice is paid.
KashFlow founder Duane Jackson said: Almost everybody is concerned about the current economic situation, including the KashFlow customers I speak to... By using this service our customers can concentrate on what they’re good at rather than spending time chasing payments.”
Research from Barclays last month found the average UK small business is owed £3,000, and 40 per cent have problems with late payment. The banks found SMEs suffer more than other businesses because they tend to pay their own bills promptly but wait longer for people to pay them.
The Federation of Private Business has also complained about the impact of late payments on smaller firms - it has compiled a"late payment hall of shame" which named Computacenter for doubling its payment terms from 30 to 60 days in July.®
How is this different from powerless debt collectors just sending letters 'increasing in severity'?
1. Payment late - pay now
2. Final warning - pay now
3. Final final warning. Court action an option
4. Final final final warning. Court action imminent.
5 Final final final final warning. Court action being prepared!
6. Erm, out of ideas.
Just like factored invoices !
Customers don't like being hassled by third parties. Debt-collectors and Factoring Agents just piss them off so they buy from someone else.
SME's suffer most? Well DUH! Both the customer AND the supplier are bigger so the SME has no bargaining position with them. Squeezed from both ends.