Debt collection can be costly and often impacts on other business activities. Management of credit can also be a challenge for any size business.
As a member of the chamber you have unlimited access to a credit management and debit recovery service. Debts of up to the value of £3000* can be recovered for free. Recovering outstanding debt and managing your credit will improve your cash flow, reduce late payments and migrate bad debt.
*only applicable for business to business debts
For amounts recovered over £3000 a rate of 2% of the invoice value is charged to you and the debtor is charged the remainder of the fees (as per the Late Payment of Commercial Debts (Interest) Act 1998).
Conventional debt recovery is where the vendor, not the buyer pays the costs. A commission payment of 5% is made on debts of up to 150 days, 7.5% on 151-300 days and 10% on 300 days plus. Alternatively a fixed charge of 8% on all debts recovered can be arranged.
If there’s no recovery, there’s no fee. Credit verification in advance of fulfilling orders. Members have direct online access to a range of credit reports. There are four levels of report available from the most basic, providing standard credit rating, increasing in terms of corporate detail, up to the most forensic credit audit.
Every credit report has a point value 1 and 4. For every debt collected members earns one credit report point. This means that if 10 debts per month are collected, 10 credit reports can be obtained free of charge. Unused credits are carried forward. Usually clients have a greater need for debt recovery than credit reports, resulting in no cost for the latter.
If the credit report requirement is higher than the number of debts forwarded for collection, points can be purchased in advance at various discounted rates. A statement of the use and credits of points is issued monthly. This system enables flexibility in selecting the level of report required for a given situation, whilst remaining cost effective