Late payment on invoices is a common problem within business to business transactions. Often or not it’s the larger more estabalished companies/local authorities that pay well beyond the agreed payments dates.
We see this as really unfair practice and is very dangerous for business as a whole as the economy is still unstable. (but growing).
As a business it is expected to give 30 days credit terms regardless of a credit check. Its traditional and the done thing to do, however it is a luxury that micro businesses shouldn’t offer. You should demand that you build a payment history to gain trust to give credit if you don’t have the means to credit check.
A company supplying web design or a service to help the client. The supplier delivers on time and to the brief what the client wanted. The invoice is raised and the client pays late by 7-10 days. The supplier has serveral clients late paying, he has to pay his suppliers but he can’t as there isn’t enough cash and he needs to pay staff. His supplier then has the same issue and the supply chain starts to breakdown and all suppliers feel aggrieved stressed and angry they’ve not been paid. Sleepless nights etc… In worse cases business go under.
When working for a small company, the owner gave me a vital lesson in business which I remember so vividly. You don’t know when you need to call in a favour from a supplier. Always pay your supplier on time in full everytime. They will always remember of the fast payers, but more importantly it will help your credit rating, you will have a good trading history which the banks love.
Government are working on new legislation to help support businesses more. However Cocoonfxmedia Ltd will pledge to its suppliers that we will pay within 30 days. We believe this will make the local and wider economy strong which will result in a better way to do business. Please support #PayIn30Days hashtag on Twitter and Facebook.