Why factoring?
Introduction
Why you should pay your invoices on time
In any organisation, a policy must have the active support of senior management if it is to succeed. This message, therefore, seeks your personal commitment to help solve the problem of late payment of debts.
As well as being unethical, the practice of deliberately paying
later than the agreed terms is wrong for sound economic reasons:
- It weakens your organisation because it harms your reputation;
- It damages your supply sources and strains your relations with suppliers;
- It weakens the economy as a whole because it constricts growth;
- Late payment is often taken as an indication that the buyer is in difficulties. If you create this impression with your suppliers you may find that their terms worsen.
Commit to paying promptly
Late payment can also be symptomatic of poor relationships between you and your suppliers. The way you manage your purchasing/sales relationship is important to your profit margins. A commitment by you to prompt payment can be a powerful aid to better buying; it will certainly produce closer, more co-operative partnerships between your firm and your suppliers.
Large corporations in particular enjoy considerable purchasing power. That power carries responsibility. The flow of cash in the economy begins with large organisations and should cascade, not trickle, down the chain of suppliers.
Paying on agreed terms injects more money into UK industry; existing suppliers are kept healthy; new firms are encouraged to compete in the supply arena; buyers benefit from a wider range of supply sources and the UK economy becomes more competitive in the world market.
IVA's
The IVA Guide
Money Advice Direct has put together an IVA Guide based on the enquiries and questions that we receive at our helpline offices.
In the guide we cover such subjects as IVA Approval, early settlment of your IVA, missed IVA payments, IVA failure, additional debt claims and much more.
[click here for IVA Guide]
What is an IVA?
The IVA is an extremely powerful tool enabling you to clear your debt and return to a clean financial bill of health. Visit Money Advice Direct's Guide to Individual Voluntary Arrangements (IVAs).
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DANGER
Due to the tremendous demand for debt consolidation services the United Kingdom is now overloaded with debt management companies that contain misleading information. [more...]