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Take Action Now To Minimise Y2K Excuses For Late
Payment
The Better Payment Practice Group (BPPG) urges companies to be
prepared for the Millennium and any possible implications it will
have on their customers’ payment performance.
The BPPG, with the assistance of the Institute of Credit Management,
has drawn up the following action plan for companies to implement
now to avoid problems later:
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Identify customers that owe you the most.
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Identify the customers you cannot afford to lose.
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Contact them to find out what progress they have made with
Y2K project and contingency plans.
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Review responses carefully, taking into account the level of
risk involved with each customer, how much trading you do with
them and how much credit you offer them.
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Ensure that in November and December you are paid on time,
especially by key customers.
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Take into account the extended holiday period and any possible
disruption to the banking system.
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Consider ways of encouraging your customers to pay you early,
i.e. before 24 December 1999. For example you could offer discounts
or the option of extended terms on the next invoice. However
make sure that any offer is properly costed in advance.
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Make sure that all your invoices and statements for amounts
due in January and February 2000 are correct and sent out promptly.
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Contact your major customers in early January 2000 to confirm
that their systems are OK.
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If problems are encountered, discuss 'cash on account' payments
for balances owing and/or 'cash with order' for future deliveries.
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Confirm with your bank in early January 2000 that their systems
are OK.
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