CCR2 Commercial Credit Management
As part of a company’s ‘duty’, and, perhaps
Not all businesses behave responsibly, that is certainly true, but there are many more who do want to support the supply chain, and who do want to strengthen their supplier relationships
of most interest to the CICM, is that it must also state whether it is a member of the Prompt Payment Code or a similar sector- specific code. We administer the Prompt Payment Code on behalf of BEIS, and we understand the role that the code is playing in improving the payment culture. We also understand its success in resolving customer- supplier disagreements. But, given the publicity around late
payment, there are not enough complaints coming our way. We only get three or four challenges a month on average, and it should be more than that as, clearly, there is plenty of noise around bad behaviour. This is incredibly frustrating, for, when we
Unfair burden? So, will the government’s latest initiative unfairly increase the burden on big businesses? I was asked this question recently on BBC Radio 4’s You and Yours. My answer was clear: most businesses
will have this data, in some form or another, and should be monitoring how they are treating their supply chain anyway, because, if they are not, then they are not doing their job.
April 2017
do get contacted, we are very successful at resolving queries, getting things changed within both supplier and buyer processes, and getting the money paid very quickly.
Afraid to complain We understand that small companies often fear raising a complaint generally, or a specific challenge to the code, for fear of damaging their customer relationship. There is little or no evidence that this is actually the case.
www.CCRMagazine.co.uk
More often than not, the challenges that
we see revolve around an invoice that has not been paid, and, when you dig further, it is very often an administrative issue, a process issue, or simple inefficiency on the part of the customer. In all such cases, our intervention allows
the problem to be resolved quickly, and often it is the first time that there has been any dialogue between the two sides about the issue. Poor credit-management practices are also
often to blame. Wrong purchase-order numbers, or the
invoice sent to the wrong address, or the wrong company, can all lead to an invoice not being paid. Not all businesses behave responsibly,
that is certainly true, but there are many more who do want to support the supply chain, and who do want to strengthen their supplier relationships. Taking a professional credit-management
approach is key. Suppliers sometimes do not appreciate the strength of their position. Setting payment terms from the outset, and adopting best-practice credit management, can make all the difference in getting paid on time. CCR2
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