Bad Debt Prevention

Protect your profits by avoiding write-offs

How can CPA help you?

If customers paid their accounts on time, running a business would be much easier. In reality, suppliers usually have to wait for payment, leaving them short of money to invest in the business or even pay their own bills. They also have to find the resources to cope with the extra administration caused by slow payers.

Losses from customer liquidations and bankruptcies can cause great distress to suppliers. Many of these were predictable and therefore avoidable.

The Credit Protection Association provides solutions, advice and back-up in all areas relating to the supply of services or goods on account. Suppliers get all they ever need to reduce debtor days and write-offs – All Under the One Roof!

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Free
Business Credit Report

Did you know?

Figures from BACS show that SMEs are owed £14bn by customers, leaving them with a bill of more than £2bn every year. The majority spend almost four hours a week chasing late payments, and 12% have to employ someone dedicated to pursuing outstanding payments.
Quarter of small firms are paid late
A report commissioned by Crossflow Payments reveals around a quarter of small businesses get paid late by suppliers. An estimated £266bn was paid late in 2016, according to the study.
Zurich surveyed more than 1,000 business owners and decision makers and found that 52% of businesses are owed money by tardy customers. 21% reported being owed more than £25,000 and almost one in ten (9%) were due more than £100,000.
A new report from leading credit insurer Atradius highlights that 41% of the total value of sales have been hit by payment delays – an increase from the 39% reported a year ago.
A survey by Zurich reveals 52% of Britain's smallest businesses are owed £44.6bn in late payments between them. More than a fifth (21%) are currently owed more than £25,000, while 9% are owed more than £100,000. Almost two-thirds (65%) thought late payments were forcing some businesses to close their doors, and nearly a quarter (24%) said late payments had caused them to dip into their overdraft in the past.
27% of UK-based SMEs have written-off money in the past financial year

Credit Applications

Members may use CPA's Credit Application forms to gather all the details needed to know exactly who they are doing business with, thus allowing them to make a safe credit decision and avoid bad debts.

Agreed Credit Terms

Setting out your terms in advance and communicating them clearly to your customers and set the framework for a prompt payment.

Risk Reduction

With the right facts, you can make the right decision. Information is power!

Credit Application Form

Bad debts often occur simply because the supplier does not have sufficient information to reach an informed and safe credit decision. Members may use CPA’s Credit Application forms to gather all the details needed to know exactly who they are doing business with.

Once this is signed, Members can:

Effectively Credit Check the business owner (especially important with sole traders and partnerships) to ensure that they have the means to pay.
Pass on all costs incurred as a result of late payment (including recovery costs), if circumstances make this appropriate.
A signed CPA Credit Application form provides you with comfort that your customer has agreed to pay on time so there can be no disputes at a later date

Credit Report

You are only moments away from being able to make an informed decision on all companies registered within the UK. This information is updated each working day from multiple sources keeping you safer than ever from bad debt. Reports show:

A clear recommended Credit Limit as calculated by expert credit risk assessors.
An at-a-glance Risk Score indicating the likelihood of the company surviving the next 12 months.
County Court Judgment information and much, much more (see example).

Monitoring

CPA Credit Reports are updated each working day, if applicable. It makes sense for you to be notified of such updates so that you may re-assess the situation. As information is power, you will be glad to have the latest information at your fingertips.

Helpdesk

Experienced staff with decades working at CPA are available to assist with credit management concerns. It is good to know there is someone knowledgeable and helpful at the end of the telephone.

Dealing Overseas?

Credit reports are available from around the world on request.

Making Credit Terms Clear

Ever since the Department for Business and Trade was the Department of Trade and Industry, they have stated that many accounts are paid late because the supplier does not make it’s payment terms clear.

CPA will help you to ensure your credit terms are clearly stated. You can bring attention to these terms by displaying our logo and artwork on your invoices and statements.

If the Department for Business and Trade are correct, you will soon start to enjoy greater cash flow.

Additional Information for Additional Power

Members may also

Reduce the risk of dealing with private individuals or sole traders by checking on the CPA system to find and verify addresses of people, businesses and trades.
Check the details of Disqualified Directors where you suspect an individual’s involvement but they are not recorded as a director.
View the list of Insolvencies and Winding-Up Petitions. In the unfortunate event that you lose money to an insolvent company you will be able to identify the appointed liquidator/administrator and lodge your claim as a creditor.
You can also avoid dealing with other UK companies of which any of the directors of the insolvent company are also a director. Our UK based help desk is available to help with any aspects of the service during working hours.
Gain access to CPA’s extensive records of the small percentage of UK Companies who have not paid due monies to CPA members in the past. This is a valuable supplement to CPA’s status reports.

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For help or advice on credit management, entirely without obligation.

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