Faster payments and late payment problemsre

We are now well into January and making headway into an economically uncertain 2011 and if John Cusack and the Mayan’s* are half way right, it might be the end of the greedy financial world as we know it and not the actual world that was prophesied as coming to an abrupt end next year?

One thing we all (public and businesses alike) wish would come to an end is the constant fuel price rises and whilst many of us would agree that the banking system is still greedy, and likely to  always be greedy and ultra capitalist, its unlikely that we are going to see reform or change, especially to bonuses any time soon.

One thing that has been getting quiet approval is to separate out the investment arms of the major banks and ring-fence them in a bid to protect the pension funds, mortgage business, bank account and savings of the non investment business of the bank. If such a system were to be set in motion we wouldn’t see more bank bailouts and the sink or swim ethos would return once more. You would therefore hope that without the ‘get out of jail free’ card of not allowing a whole bank to collapse, hedge funds and other speculative banking business would then become self regulating and more focused on results?

One thing the banks have done right of late is Faster Payments.

Most of the high street banks are now part of the scheme and not just the clearing banks of HSBC, NatWest and Barclays etc are in the scheme, which sees online banking payments being sent immediately from your account to the recipient and cleared in real-time, or at worst, within two hours of clicking ’send’.

This is part of the phasing out of the practice that sees banks holding onto client monies for longer than necessary and speeding up the clearing process. The added benefit of this howebver is that along with it, cheques are also being phased out!

And we all know that when there are no more cheques, there are no more excuses like “yes I have paid your invoice, the cheque is in the post”

Late Payment Problems

Whilst the removal of cheques may remove one excuse and will have some effect on late payment problems and cash flow difficulties it is hardly going to remove the issue altogether and many businesses will still suffer.

Faster payments doesn’t do much good if your customer can’t pay or worse still won’t pay the invoice until a certain date and excuses will still be presented in place of cheques. It isn’t all doom and gloom and for a small fee systems can be put in place to help reduce the problems of late payment and cash flow difficulties as a result and others put in place to near remove all effects of such problems.

With services such as bad debt protection and credit control management, otherwise known as outsourced credit control, and on the finance side, invoice finance facilities like factoring and invoice discounting, you can all but eliminate the effects of late payments, bad debt and cash flow difficulties.

For more info and advice on invoice discounting and invoice factoring or a quote on the best deals from numerous small business finance providers, pick up the phone or use our ‘Am I eligible’ tool via the site for further details.

Factoring Finance has a UK wide, independent broker network able to source the best deal for you and as such, we are not tied to any one provider, or bank!

*see film 2012

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