Prompt Payer nears landmark
Prompt Payer nears landmark and has now recovered nearly £100,000 on behalf of HETAS registrants. HETAS has a business relationship with Prompt Payer whereby Registered Installers will automatically receive FREE premium membership of Prompt Payer as part of their HETAS registration. Membership with Prompt Payer normally costs £250 and is one of the many benefits of HETAS registration.
Recent research has shown that small businesses are owed over £700m in unpaid invoices and the wait for payment is now 84 days!
It also shows that small businesses spend an extra 14 days chasing debts. Nearly 50% of all invoice are paid late, yet 79% of business don’t charge interest that they are allowed under Law.
Prompt Payer is on your side and have helped many installer businesses receive payment for unpaid invoices and membership with Prompt Payer is free for HETAS Registered Installers. Here’s what Prompt Payer will do for you:
- follow a debt collection procedure, as set out by the Financial Services Authority
- where applicable, we calculate and add interest and charges as permitted by the Late Payment of Commercial Debts Act 1998
- provide you with a paper trail in case of court action
- they are on your side and have heard EVERY excuse
- will help you through the court process if required
- take the stress away
- membership is already paid for by HETAS, Prompt Payer take NO collection fee
To contact Prompt Payer, click here to complete an enquiry form on the Prompt Payer website.
Click here to find out about the full range of benefits available to you through your registration with HETAS.
When debt collection fails
Mark Flower from ethical debt collection recovery service Prompt Payer talks to us about the options for businesses to recover debts owed. Prompt Payer is a free benefit of HETAS registration.
Prompt Payer assesses debts carefully and where appropriate tries very hard to collect the money you are owed, but when they fail Court action might be the only route. The process for making a claim is very straight forward and can be done online. Here, Mark outlines the process:
Their options include:
- Admitting the claim if they agree they owe the money you are claiming. They will also need to fill in a form giving the Court details of their financial circumstances and they will be asked to make an offer of payment
- Filing a defence, if they disagree with the amount they owe.
- Submitting an acknowledgement of service if they intend to defend the claim but need longer than 14 days to prepare a defence
If you receive judgement
The court can issue:
a judgment by instalments, where the debt is paid off over time, or
a judgment forthwith, where the whole amount owed is due immediately
If they have admitted the claim and made a monthly offer of payment, it is likely that they will receive a judgment by instalments.
The monthly repayment rate will be set by the court using the information provided in the admission form.
If they don’t respond to the claim the Court can’t take their circumstances into account, they will enter a judgment against them. This is called a judgment in default.
They can ask the Court to look at this again if the repayments are more than they can reasonably afford. This is called a redetermination.
If they don’t keep to the terms of a CCJ
If you receive a CCJ in your favour and they don’t keep to the terms it sets out, you can ask the court to enforce the debt. There are several ways that they can do this:
- Bailiff action
- Attachment of earnings
- Charging order
Through your registration with HETAS, you have access to Prompt Payer. To contact Prompt Payer, click here to complete an enquiry form on the Prompt Payer website. . Additionally, via Prompt Payer, you have access to a legal helpline. Click here to find out more.
Late payments are an issue for more than half (53%) of Britain’s small and medium-sized businesses (SMEs), according to new research. The total owed to British SMEs by their customers currently amounts to over £225bn, with one in five (20%) owed more than £25,000, one in ten (8%) £100,000 or more, while 1% are waiting for upwards of £1m.
A threat to business
Late payments are causing serious problems for many SMEs, with 41% experiencing significant cash flow problems as a result. Even more worryingly, two thirds of SMEs (67%) agree that issues with late payments are leading to some SMEs being forced to close.
How to tackle outstanding payments
Despite many businesses feeling that more needs to be done, existing legislation can already provide SMEs with some much needed assistance. When faced with late payments by customers, businesses have several statutory tools at their disposal, including the ability to charge interest and recoup debt recovery costs
Late payments guidance for SMEs
If no term has been specified, a payment is considered late after 30 days from the day a customer receives their invoice, or 30 days from when goods/services are delivered, whichever is later.
If no interest terms have been agreed via contract, statutory interest can be charged at 8% plus the Bank of England’s base rate.
In addition to interest, businesses can charge a fixed rate (between £40 and £100 depending on the size of the debt) for the cost of recovering the debt. Suppliers can also claim for reasonable additional costs.
Remember membership of Prompt Payer is free service for HETAS Registered Installers. To contact Prompt Payer, click here to complete an enquiry form on the Prompt Payer website. Please quote your HETAS registration number to find out more or to discuss any of the above issues.