Bad debt
1. How do small and medium-sized enterprises deal with persistent late payers that damage their cashflow and make it difficult to survive?
2. There is no doubt that late payments continue to be a problem – 85 per cent of small businesses say it has been a major issue over the past two years, while nearly half say their most consistently difficult debtors are paying late three times a year or more. According to the payments organisation, Bacs, small businesses in the UK were owed £36bn in late payments.
3. We know how difficult late payments can be. Data suggests that one in five small businesses go bust because of bad debt. And business owners that survive often have to use their own funds or borrow against their personal assets, while waiting for payment.
4. There are some things that business can do to protect themselves – conducting credit checks on customers, chasing bad debts more efficiently, or demanding payment upfront. But the problem still exists and has got steadily worse during this economic downturn.
5. We may soon see a new stage in the war, however. Many companies are now simply refusing to do business with their most persistent late payers. One in five companies say that over the past year they have refused to do business with customers who have paid late in the past.
6. This is the extreme option, of course. But in the end, if a customer is prepared to do financial damage to a business by repeatedly not paying their bills on time, what other choices do owners have?
7. If more small businesses take this approach, it is likely to be more effective – especially if they work together. A customer that knows its business won’t be accepted anywhere if it fails to pay on time is much more likely to be a timely payer. It’s a small world out there. In many industries, small businesses know their competitors and their customers very well. By working with each other, they can produce a "blacklist" of customers who won't settle their bills.
8. This could work with smaller customers. Bigger businesses, however, are less likely to feel threatened by a boycott from one sector or area of the country.
9. If the campaign is organised effectively, however, it should be possible to take on even the largest organisations.
10. For small businesses, the culture of late payments creates two problems: firstly, they are more likely to be treated poorly because bullying the small guy is the easy option. Secondly, they are less likely to have the cash reserves needed to cope with the situation. And if customers pay your business late, it becomes harder to settle your own bills on time.
11. By working together, however, small businesses can take much more aggressive action, and they should not hesitate to do that. The late payments cycle is damaging everybody’s business – as well as the wider
economy.
Summary.
ОтветитьУдалитьThe article headlined “Bad debt” is adapted from The Independent, by David Prosser, 28 January 2013.
The main idea of the article is the problem with late payers and what damage they can cause to the business.
According to the author, 85 per cent of small businesses say that the problem of non-payment of debts has been the main problem over the past two years.
Of course, non-payment of debt is doing great harm to business. According to the data, every fifth small business goes bankrupt due to non-payment of debts.
As this problem becomes more popular, companies have to come up with tougher methods to deal with late payers. Many companies simply refuse to do business with late payers. A customer who knows his business won’t be accepted anywhere if he doesn’t pay on time is much more likely to become a timely payer.
The author concludes that the late payment cycle hurts everyone’s business. However, only by working together can companies achieve good results.
the article headlined "bad debt" from "Adapted by from independent" has written by David Posser, in 28 January 2013. The essay is about the problems of business with bad payment.
ОтветитьУдалитьsmall and medium-businesses often has difficulties with their activities due to the not payment or the late one by their debtors or customers. This fact leads enterprises to go bust or if they don't, they need to take their own funds for their business. So for their protections, they put some conditions of payment as conducting credits checks on customers or demanding payment upfront, now companies choose just to refuse to collaborate with late payers. Anyway, the phenomenon of late payment is still frequent.
By the Author, tow problems have caused by culture of late payments to small business: first, they are the first victim, and they do not have enough money to save themselves of the situation. But Posser adds that late payment should not be an hesitation to work with small business, however, it can ruined every kind of business.
The article headlined “Bad debt” is adapted from The Independent, by David Prosser.
ОтветитьУдалитьThe main idea of the article is that late payers cause permanent monetary damage to medium and small enterprises. According to the author, late payments are still a problem for small businesses over the past two years. According to the payment organization Bacs, small businesses in the UK owed 36 million pounds for overdue payments. Data suggests that one of the small business go bust because bad debt. Many small companies simply refuse to do business with customers who have paid late in the past. If more small businesses use this approach it will probably be effective. Working with each other, they can create a "black list" of customers who do not pay their bills.
In conclusion, the author points out that the cycle of late payments causes damage not only to small businesses but also to the entire economy as a whole.
(This is a corrected version)
ОтветитьУдалитьThe article headlined “Bad debt” is adapted from The Independent, by David Prosser.
The main idea of the article is that late payers cause permanent monetary damage to medium and small enterprises. According to the author, late payments are still a problem for small businesses over the past two years. According to the payment organization Bacs, small businesses in the UK owed 36 million pounds for overdue payments. Data suggests that one in five the small businesses go bust because bad debt. Many small companies simply refuse to do business with customers who have paid late in the past. If more small businesses use this approach it will probably be effective. Working with each other, they can create a "black list" of customers who do not pay their bills.
The culture of late payments creates two problems for small businesses: firstly, they are more likely to be treated poorly, secondly, they are less likely to have the cash reserves needed to cope with the situation. And if your customers pay you late then it will not be easy for you to pay your bills on time.
In conclusion, the author points out that the cycle of late payments causes damage not only to small businesses but also to the entire economy as a whole.
The article headlined is “Bad debt” is adapted from The Independent, by David Prosser.
ОтветитьУдалитьThe main idea of the article is the problem with late payers and the consequences.
According to the us payments organization, one in five small businesses went bankrupt due to bad debts.
According to the article, there are some things a business can do to protect itself, such as conducting credit checks on customers, pursuing bad debts more effectively, or demanding payment upfront, but many companies now simply refuse to do business with their delinquent payers.
In conclusion, the author suggests that small businesses work together to achieve better results
ОтветитьУдалитьThe headline of the article I have read is “Bad debt“ from The Independent, by David Prosser.
The key problem of the article is to find solutions to problem with persistent late payers that damage their cashflow and make it difficult to survive.
According to the author 85 percent of businesses said the problem has been serious over the past two years. Also the article mentions only the fact that one in five small businesses go bust because of bad debt. David Prossor considers it necessary to conducting credit checks on customers or demanding payment upfront to be able to protect yourself. In addition the author supports companies that have refused to do business with clients who have paid late in the past. He believes that this option will be really effective if all enterprises unite on this issue.
The author concludes that for more aggressive actions towards persistent late payers, small businesses should work together. And by working with each other, they can produced a “blacklist” of clients who are not paying their bills, but this could only work with smaller customers than large businesses.
The article headlined is “Bad debt” is adapted from The Independent, by David Prosser.
ОтветитьУдалитьIn the article the author reveals the problem of late payments. The problem has to do with the damage that late payments do. Late payments ruin many small businesses. The author suggests conducting customer checks, or charging them in advance. The market should also adjust to bad customers, and firms should create blacklists. Market regulation will help solve this problem, the author has in mind.
The author says that joint action by businesses will help solve the problem.
The article is headlined “Bad debt” is adapted from The Independent, by David Prosser.
ОтветитьУдалитьThe main idea of the article is the problem with late payers and and how much damage they cause to small and medium-sized enterprises.
According to the author, many small businesses consider the problem of non-payment of debts as the main problem.
Late payments ruin many small businesses.
As this problem becomes more popular, companies have to come up with tougher methods to deal with late payers. Many companies simply refuse to do business with late payers.
The author suggests conducting customer checks, or charging them in advance.
He believes that market regulation will help solve this problem.
In conclusion, the author suggests that small businesses work together to achieve better results.
The article headlined Bad Debt is written by David Prosser. It is taken from The Independent.
ОтветитьУдалитьThe key issue of the article is late payers and companies debts.
According to the author late payments is a big problem, one in five small businesses go bust because of bad debt. To protect themselves, this companies can conducting credit checks on customers, chasing bad debts more efficiently, or demanding payment upfront. Many companies are now simply refusing to do business with their most persistent late payerspayers, and this could work with smaller customers, but bigger businesses are less likely to suffer from it.
The author concludes that working together, small businesses can take much more aggressive action, and they should not hesitate to do that.
The article headlined “Bad debt” is adapted from The Independent, by David Prosser
ОтветитьУдалитьThe main idea of the article is the problem with late payers and the consequences.
According to the author 85 percent of businesses said the problem has been serious over the past two years. Also the article mentions only the fact that one in five small businesses go bust because of bad debt.
some things a business can do to protect itself, such as conducting credit checks on customers, pursuing bad debts more effectively, or demanding payment upfront, but many companies now simply refuse to do business with their delinquent payers.
The author concludes that the late payment cycle hurts everyone’s business. However, only by working together can companies achieve good results