Home > Uncategorized > PACT. The late payment database. Good idea or not?

PACT. The late payment database. Good idea or not?

A new database has been set up to “name and shame” late paying businesses. Members pay £10 a month to access the details and also use the PACT logo as a deterrent against their debtors

The issue of small businesses being hammered by late paying corporations is not going away and it strikes me that the raw anger is increasing across the Sme community but is this the solution?

Two thoughts immediately spring to mind. Firstly I do find it a little doubtful whether many clients will be particularly bothered. The “you need us more than we need you” relationship will always be the biggest driver. However there is the otehr side of the coin.

If a client does care about its reputation and creditors are going public with on th record accusations of late payment then that is potentially dangerous. “Late payment” can be down to many factors and not all of these will be the debtors intransigence. Far from it.

Bad invoicing and any number of disputes can be responsible and frankly many creditors will be blind to their own failings here which will results in knee jerk accusations. A business taking exception to this may well consider engaging my learned friends

We all wish to see th e late payment culture curtailed but sadly I believe this is another scheme that will have little effect

 

 

 

 

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Categories: Uncategorized
  1. February 4, 2016 at 1:32 pm

    I agree Clive. Satago tried don’t this a couple of years ago, spending a great deal on marketing to try to kick it off. It didn’t work due to the reasons above but also due to the fact that debtors that clients do decide to shame probably need more stringent action than being put on a list with a limited readership. Working with a professional credit management or debt recovery partner is far more effective.
    Jeremy Milligan
    Sterling Debt Recovery

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