Make sure your business "gets paid"

Slow payment by debtors can kill a business but a new initiative in Dunedin is offering a helping hand. Three companies that assist businesses to "tidy up" their debtor management so invoices get paid faster have combined to give 60 businesses 50% off their normal fee.

This initiative, instigated by the Economic Development Unit of the DCC, is the first time that Protocol Credit Bureau, Be Paid Ltd and Debtworks through its Creditbiz brand have combined forces. David Young, from Debtworks says that it has been an ideal chance to give something back to the local business community, "We have all agreed to reduce our fees to help local businesses out". As well as the 60 businesses that will get the discount, the three Debtor Ledger Management services are offering any other business that applies online a one hour free consultation.

"Sometimes there are some very simple things we can suggest that can make a major difference" suggests Stella Nicholson from Be Paid Ltd, "Getting your invoices out each week rather than doing them once a month can help, and offering people the chance to pay the bill via online banking".

Dene Bannister from Protocol Credit Bureau believes that good internal procedures can reduce the risk for business, "Making sure you do credit checks on new customers, and that you are regularly communicating with your debtors should minimise the chances of having to resort to debt collection".

Businesses can apply online at before 21 April for the 50% off.

They can choose a preferred supplier from the three on offer, or leave the Economic Development Unit to allocate them one of the debtor management businesses. There is an upper limit of $500 for the discount (i.e. $1000 of services) but businesses can choose to purchase any value of help from the suppliers.

While some people have asked about whether the "Get Paid" initiative simply moves the problem around the community, Peter Harris, Manager of the Economic Development Unit, believes that people paying their bills is a key part of keeping the local economy moving. "If one business is struggling because of slow payers, their suppliers will probably be waiting for payment too", he said, "Debtors management can help keep the cash flowing so businesses can pay their suppliers who can then pay their suppliers. Cash oils our economy". The selection process will favour businesses with debtors outside Dunedin so payment brings money into the city.

Peter Harris says that the "Get Paid" initiative highlights the need to close the gap between supplying a product or service and collecting payment. "There are costs a business incurs when making a sale so it increases expenses until the money is in the bank" he said.

The other advantage of getting specialist help is that it can relieve people of a chore. "Accounting and debtors management can feel like a burden that hangs over people" Mr Harris says, "but getting some help can reduce this stress and free up owners to focus on other ways to improve their business".

Contact details

Contact Peter Harris on 477 4000.

Last reviewed: 14 Apr 2009 9:34am