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Businesses frustrated by cashflow problems caused by slow paying debtors now have the chance to use the B2B Cashflow Club, an online service that names and shames late payers and encourages them to put a cheque in the post, rather than simply saying they have.
B2B Cashflow Club offers two services - Name and Shame and The Watch List.
"Name and Shame" works by sending the debtor a letter on behalf of the creditor giving them 21 days to pay.
If nothing happens after 14 days, the club sends a reminder giving seven days notice. If this is ignored, the creditor can post a notice on the website about the outstanding debt. Once a post has been made, the debtor, creditor and any other interested party can add further comments and truly shame the company concerned.
The "Watch List" gives creditors the chance to take joint action.
They simply send the club the name of a company they want to monitor and, if the company is about to be named and shamed by another member, they will receive an email alert.
A spokesman stated: “So many companies seem to take longer and longer to settle
invoices – frequently over 60 days. In particular, new businesses and start ups
can be seriously damaged by late payment, while some may face bankruptcy.
"Sadly, creditors usually find it’s difficult to use a debt collection agency
successfully or take the defaulting companies to court as these slow payers know
the system so well.
“B2B Cashflow Club works on the principle that no company or sole trader wants to be depicted on the internet as a slow or non-payer. In the unlikely event of the debt not being paid, the creditor has the satisfaction of naming and shaming the debtor."
Source:
RedAlert
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