Financial Resource

Companies not paying on time ……………… do so for two main reasons. a) they have severe cash flow problems and b) they use their customers as an interest free loan.

Trade credit is almost always interest free, in the current climate customers are using their suppliers as loan providers.  Any extra delay means money in the customer’s bank and less money in that of the supplier. The customer in such cases is using the credit to reduce the monthly or daily interest on any loans they have or to use it as working capital.

By stretching the accounts payable, a customer is increasing the value of this extended credit to fund it’s day to day operation, be it to pay staff, pay utilities or pay for goods which do not offer or give such good credit.

 This is where the commercial world differs from personal finances. We are forever being urged as consumers to check our credit rating, one late payment can stop you from getting a loan from a financial institution. There is nothing comparable in industry. Again from a personal angle you have to work hard to find out and argue your case if you feel that your credit rating is wrong.

 DUE2PAY has taken the initiative in the commercial world by creating a website which looks after the supplier and allowing members of the site know when a particular company is listed with DUE2PAY as a late payer. Compared with personal finances the similarity stops here. At DUE2PAY, members are encouraged to discuss matters with each other. Suppliers in different industries can email each other through the site’s message system. They can put the customer on the spot and ask them why they are paying late, this is especially useful when a company is approaching a new supplier.  

DUE2PAY is a member only site. It is UK based for UK Limited companies. It can be used in two distinctive ways:

1)      Late paid invoices can be registered and this information can be searched by other members.

2)      A company without late paying companies also join to monitor their own customer base and also any one they may consider doing business with in the future.

 To save members logging on regularly, a Watch List  function allows them to list companies which they would like to keep an eye on. An email is sent to a member when a company they have put on their Watch List is registered on the site as a late payer. In today’s world of business, late payers have no concern for their payment reputation, have no regard for good business etiquette, are unconcerned about the extra cash flow burden they are transferring to their suppliers

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