Monday, 6 October 2008

Get Paid, On Time

We are noticing an increase in the amount of small business owners attending our Getting Paid workshops recently and it doesn’t really come as a surprise considering current financial trends in the UK.

All businesses are feeling the effects of the credit crunch and want to make sure that any credit they decide to offer is going to be honoured, in the time specified.
This goes for suppliers to; how do they know that your company is going to pay them on time?

There are a few simple things that companies can do to increase your status as a reliable customer, including:

-Making sure you file your accounts on time at Companies House (if you are a limited company)
-Maintaining a good payment performance by paying invoices on time, especially those owed to large utility companies.

A company’s credit score is greatly influenced by the two variables above and credit scores are one of the most common methods of selection used by businesses when deciding credit limits for customers.

Companies such as leading provider Experian calculate credit scores by using sophisticated scoring methodologies to derive a single score and there are many different factors taken into account (as many as fifty factors in some cases), such as:

-Size and age of a business
-Legal status
-Business sector and location
-CCJs’ and bankruptcies
-Companies House filings
-Track record of proprietors
-Payment performance.

For start-up companies, getting paid by customers will be the difference between success or failure in the first couple of years for business.

To learn more about our workshops, please visit our website or call us on 0845 880 9500.