Three quarters of firms will be updating credit management practices in 2004
According to a poll conducted on the Better Payment Practice Group (BPPG) website during December, 75 per cent of firms will be using the new year as a good opportunity to update their credit management practices.

The poll, of more than 400 businesses of all sizes, also revealed that most firms are expecting their late paying customers to continue with their bad habits during 2004, with only 18 per cent expecting their customers to turn over a new leaf in their payments behaviour.

In light of this research, the BPPG would like to remind all businesses of the importance of having a good credit policy which should be clearly communicated to every member of staff in the business. Many of the measures that need to be considered are basic techniques, but they can significantly reduce the likelihood of being paid late.

These include proper credit vetting of new and existing customers, the need to make terms and conditions clear at the outset, and the importance of a well thought out credit management/collection strategy in case of default.

Dominique Vaughan Williams, member of the BPPG representing the Association of British Insurers commented: “It’s never too late to improve credit management practices. As our survey shows, it’s highly unlikely that late paying customers are going to change their tune without any pressure to do so from the supplier. Businesses need to take preventative steps to minimise the impact of late payment, and not be afraid to protect their cash flow.”

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