Mobile App Helps Suppliers Hunt Down Payments

As the U.K. continues its efforts to combat late supplier payments through legislative action, the private sector has unleashed a new strategy in the form of a mobile app.

Reports released Wednesday (Nov. 4) said that one debt collection site, Best4DebtCollection.co.uk, has rolled out its debt collection app, a free mobile solution for small suppliers in need of help chasing down their outstanding receivables.

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The tool lets companies send “Notice before Action” alerts to buyers to alert them about overdue invoices before a supplier takes further action to collect payment. The solution, reports added, also provides a way for suppliers to identify which invoices are overdue and run credit checks. The app includes a news feature to update suppliers on the latest developments in debt collection and late payments action in the U.K.

If a supplier decides to take further action, the app also helps to filter out the more than 400 debt collection agencies to choose which will provide the most appropriate services it needs, the company said.

According to Best4DebtCollection, the mobile tool aims to provide suppliers with another way to improve their cash flow.

Corporations have taken to signing the Prompt Payment Code in recent years as a public vow to pay their suppliers on time. The code, however, is self-governing without a mechanism of enforcement.

Analysis of the effectiveness of the Prompt Payment Code released earlier this year concluded that while the number of companies signing the code has tripled in the last two years, 40 percent of businesses say they have had to wait longer than 30 days to get paid; 43 percent reported having to wait longer than 90 days for their payments.

More than one-third of those surveyed said that their late payments were caused by their corporate buyers extending payment terms without negotiation.

Separate analysis found nearly $49 billion worth of outstanding invoices in the U.K., as of last March.

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