Press release - 5th September 2008
A UNIQUE web-based credit control service has helped hundreds of companies claw back more than £4 million in unpaid invoices.
The Enterprise Zone recently reported that small businesses are being hit hard by customers who delay paying their bills for as long as possible.
But Cashflow Protector – a unique aid to your credit control – is helping to redress the balance – big time.
In the last 18 months, Cashflow Protector, the brainchild of entrepreneurs Alan Smith and Leighton Wilcox, has successfully chased more than £4 million in unpaid invoices for their members without upsetting a single client.
And the growing company, which has more than 100 members on its books, has even acquired business from people it has chased for money!
Says Leighton: “This reinforces the whole ethos of why we set up Cashflow Protector in the first place. Our unique system is designed to speed up payment and maintain relationships, and it does exactly that.
“The irony is that our clients’ customers are often slow payers because THEIR clients owe THEM money, and so it goes on. It’s simply a vicious circle of companies who are caught up in an on-going battle to recover their money.”
This explains why SMEs write off an average of £5,000 in unpaid invoices every year because it’s just not cost effective to keep chasing overdue invoices and the figure is increasing year on year.
Alan said: “Just because a client owes you money it doesn’t mean they’re a bad client. More often that not, they are simply going through a bad patch and are cheekily using you in the same way as an interest free loan.
“Delaying payment for months on end gives them vital breathing space, but if enough people stop paying you for months at a time you could go bust and many businesses have done exactly that.”
Leighton added: “Although we have spent a great deal of time and money perfecting our on-line credit control service, the idea behind it isn’t rocket science.
“If you don’t chase your client on a regular and organised basis when invoices become overdue, they will assume you don’t mind them not paying and will perceive it as an extension of their credit terms.
“We have proved time and time again that people who get us to chase their money get paid. It’s as simple as that.
“But I’d also like to stress that we’re not debt collectors or a factoring service and that any overdue invoices are paid direct to our clients. We might chase money but we don’t collect it.”
Small businesses pay less than £20 a week for membership which allows them to use the Cashflow Protector system to chase 25 of their slow paying clients a year. Membership also includes the services of Cashflow Protectors in-house lawyer.
Cashflow Protector has also developed a bespoke service that allows larger companies to upload overdue invoices direct from their accounts systems – thus automating the chasing process.
Alan added: “People like our service because we take the emotion out of chasing overdue invoices. If people owe you money, its embarrassing asking for it, particularly if they are friends or good clients and you don’t want to risk upsetting or losing them. But we do it in such a polite and professional way that no-one takes offence.
It provides a cost effective alternative to Factoring and Invoice Discounting as there are no commissions or percentages charged and payment of all invoices go direct to our members.
“Companies who employ us are simply outsourcing their credit control. Outsourcing no longer has any stigma and allows businesses to concentrate on what they do best.
All I can say is that it works!”
• For more details, ring Cashflow Protector on 020 8536 4138.
Or view at www.cashflowprotector.co.uk
CASE STUDY
Cashflow Protector’s clients include Dan McDonald from Danimak.
Dan his wife Michelle have three sons aged four, ten and 12 and they live in Billericay, Essex.
Dan offers a nationwide service and specialises in the installation and maintenance of air conditioning and electrical equipment with particular emphasis in the leisure industry.
His clients include multi-millionaire Duncan Bannatyne of BBC2s Dragon’s Den fame who owns a string of Bannatyne Leisure Clubs and he also works for LA Fitness, the David Lloyd Leisure Group and Esporta Leisure.
Dan said: “I can honestly say that Alan and his team and the system they have developed has proved instantly successful for my company when chasing old or overdue invoices.
“The on-line system is simple to operate and by registering overdue invoices I know it’s one less task on my list.
“I would recommend Cashflow Protector to anyone and am delighted to confirm that in the last 18 months they have successfully chased a staggering £624,000 for me.
“I am absolutely thrilled and couldn’t have survived without them.”
Ends
Issued by Gill Ferry Communications: 020 8850 6218.