With late payers continuing to make life difficult for small and medium-sized businesses, the Southern Society of Chartered Accountants has come up with ten tips to keep the money flowing.
Clive Rusden, deputy president of SOSCA, which has members in south Wiltshire, Hampshire and Dorset, said: â€œLate payment legislation hasnâ€™t curbed the culture of late payments to suppliers.
â€œBut this doesnâ€™t mean small businesses are powerless in the face of the organisations they sell to.
â€œSmall businesses must be ready to negotiate terms when they receive an order, particularly from new customers.â€
The societyâ€™s ten tips are:
â€¢ Understand the customerâ€™s payment terms: where invoices should be sent, what references or order numbers should be quoted, and whether the customer only accepts electronic invoicing.
â€¢ Have effective internal procedures in place: what level of credit checking is required and how frequently credit limits are reviewed.
â€¢ Make credit terms clear: If there is a difference between your payment terms and theirs, donâ€™t ignore the issue, negotiate.