We have set up a partnership with one the UK”s leading cashflow management companies to help IT contractors solve late payment issues with end clients and agencies.
Late payment problems
Over the past few years, there has been a marked increase in the proportion of invoices that are paid late. Bacs estimates that in 2009, the total amount owed to small companies is up 40% year-on-year.
For contractors who encounter a late paying client (or less commonly, a recruitment agency), it can take just one single overdue invoice to cause significant cashflow problems.
Following several requests for help from Contract Eye visitors, we decided to find a reliable and trustworthy provider to help contractors deal with late paying clients.
Why Safe Collections?
We recently got in touch with Safe Collections after a customer failed to settle several invoices, totalling over £2500. After months of calling and emailing the client, our patience was exhausted. Thankfully a business partner, who also runs a contractor news site, recommended the services of a specific debt recovery firm.
We emailed the details of the overdue amounts, and the client’s contact details to the recovery firm, who dispatched an ‘appropriately worded letter’ to the client.
Literally the next day, the client called us with some lame excuses why the payment had yet to be made and sent over the full sum owed via CHAPS the same day.
On several subsequent occasions, we have simply used the threat of contacting our debt collections partner to secure overdue payments.
Companies simply will not want to have a record of late payment or County Court Judgements recorded against their names on the public record.
Rates for Contractors
Using our partner recovery service, the late paying client will typically be sent an initial request for payment, followed by a series of phone calls and ‘other measures’, which have been proved successful over time.
There are no upfront payments, and you will only be charged a modest fee once payment has been secured. As a rough example, for invoices up to 2 months overdue, you can expect to pay 5% of the invoice value to the debt collection service provider. This percentage will increase for overdue payments over 2 months, as the older the debt, the harder payment tends to be to chase.
Visit the Safe Collections site for more details, or call +44 (0)1772 454505 for more details.
Make sure you mention ‘Contract Eye’ when using the service, as you will receive preferential rates. We do not benefit financially in any way by recommending this service to our visitors.