Companies spend a lot of time chasing overdue debt.

Date:

Business and accounting departments spend a lot of time on overdue debt, when it might be best to consult with sales teams about who is doing the business in the first place.

An online survey of Debt Registry, a new digital payment platform, found that nearly a third (32%) of all businesses and three-quarters (51%-75%) spend their time late when they can afford it. Other things and nearly a quarter (24%) spent more (76%+).

Those who spent the most time observing debt are the teams working in the healthcare sector: 80% of companies surveyed spent 80% or more of their time on the phone or via email. Manufacturers also struggled for money: 44% spent more than 50% of their time looking for money, while more than a quarter (28%) spent significantly more time (76%+).

They appear to be the most “effective” in the services sector (accountants, consultants, etc.), with 43% spending less than 50% of their time on delays and about a quarter (23%) spending between zero and 25 years. % cash up. Energy sector activities are also less problematic; 60% spent less than 50% of their time on delays

In the technology sector, exactly half of them spend half their time or more (32% over 50% and 18% over 76% on overdue debt, while a similar picture emerges in the banking and financial sector (48% spending over half. Overdue).

The study is published in the context of new technologies and systems now available that can automate the back-end payment process, and dramatically improve cash flow without incurring team time or costly (and often unproductive) legal procedures.

Reading these numbers is embarrassing, says Gary Brown, founder of the Debt Registry: “In a perfect world, companies keep track of bills before they’re due, not when they’re already late,” he says. “There are many tools that can quickly manage arrears and fire a credit manager, directing their companies to the businesses they need to trade with and away from the ones that are most at risk.”

Philip King, advisor and industry champion, agrees: “Sure, the main role of a credit manager is cash flow, but it also means working with a wide range of businesses to define appropriate credit terms with clients and agree on who is/isn’t. Not a good risk. At these times In difficult circumstances, companies will try to make money for longer, which is why it is so important to have the right processes and tools in place to ensure that a credit manager spends time in areas that require special skills.”

A ledger is essentially a universal payment accelerator that allows a credit manager to identify overdue invoices in their ledger and let the platform do the rest. The debt registry will automatically contact the debtor and in the appropriate language, ask for payments to be made and ensure that the invoice is correct and not contested. In experience, the purpose-built digital platform can settle debts 10 times faster than traditional lawsuits and at a fraction of the cost.

By partnering with major credit reference agencies (CRAs) to report outstanding and overdue debts, debtors can pay off any overdue debts in a timely manner to avoid negative impact on their credit scores.

Debt Registry is globally available and designed for any business regardless of industry.

Source: Belfastlive

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