As a small business in the U.K, I need to know how to put pressure on a bigger company that is to paying a strict 30 day account. Is there any way of black marking the company to warn any other smaller business's??
2007-03-20 01:49:36 · 6 answers · asked by Lucky Cat 3 in Business & Finance ➔ Small Business
Are these businesses not paying at all or are they just late?
If they are not paying are you running credit checks on these companies to which you extend net terms?
If they are late, I am a small business owner in the states and I can tell you at least here in the US that most large companies pay their bills in 60-90 days even though I only extend them net 30 day terms. You may want to start imposing late charges (1.5% per month), but that may just make your customer(s) angry. If you are cash strapped then you may also want to sit down with someone in the account payable department at your customer's site and explain to them that when they extend the net terms it hurts your business and it's cash flow, that may help also.
2007-03-20 01:55:27 · answer #1 · answered by schneid123 3 · 0⤊ 0⤋
Big companies are known for dragging out their payments. You say net 30 days and sure enough they take 60. You can try warning other small businesses, but to be honest, most small suppliers need the large account and will take the risk. You can try insisting on payment in full up front, but don't be surprised if they find another supplier at that time.
2007-03-20 11:18:58 · answer #2 · answered by Anonymous · 0⤊ 0⤋
You can always talk to other small business' owners and warn them about these shady companies. I don't know how it works in the UK but in Brazil companies and individuals that do not pay their debts are put into a kind of blacklist that other companies have access to when deciding if they should trust that company/individual or not.
If you have any documents that show that the company is in debt with you and it was signed by an employee of that company, then you might be able to force the payment through legal methods. I recommend you checking with your lawyer about this.
Additionally, you should not sell based on trust only, especially to people/companies you don't know a lot about.
2007-03-20 08:57:16 · answer #3 · answered by denisgomes 7 · 0⤊ 0⤋
I am sure you could just tell the smaller businesses but please dont. If your large company finds out that YOU were responsible for spreading this rumor they could black list you and the results would be much more devistating than anything you could do to them..
Why not ring them up and see if you can talk directly to the person responsible for making the payment.
Sometimes this helps much better than posting a bill request to him.
2007-03-20 09:21:19 · answer #4 · answered by lisa s 6 · 0⤊ 0⤋
The best thing you can do is insist on pre-paid transactions in the future. They will get the message.
2007-03-20 08:52:50 · answer #5 · answered by Anonymous · 0⤊ 0⤋
No. You need a legislation to do that!
2007-03-20 08:52:05 · answer #6 · answered by SGElite 7 · 0⤊ 0⤋