Bouncing cheques hit business

Almost half of all businesses have been victims of bounced cheques in the past year, according to the Better Payment Practice Group (BPPG), which has reiterated its advice to run credit checks.

A BPPG poll found that 46% of all businesses had received cheques that bounced in the last year, with those employing 10 to 49 staff the worst hit. On the back of these results, the BPPG and business information group Equifax are urging small businesses to check the credit records of both new and existing customers; the latter claims its Credit Community can help with this.

‘It is essential that businesses have access to the most up-to-date information available about the financial status of their customers,’ comments Nick Frazer, head of Business Information Services at Equifax. ‘The Equifax Credit Community enables businesses to share critical default information about their customers as soon as it happens, including bounced cheques, County Court Judgements (CCJs) and letters before action. With access to this critical and timely information, businesses are better placed to react quickly and effectively to changes in their customer’s financial status.’

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The BPPG is also inviting businesses to enter its awards, which recognise those who understand and implement good credit management and are consequently paid on time. There will be awards for one small and one large business along with runners-up prizes.

‘Getting paid on time is vital for any business. The Better Payment Practice Awards recognise companies that invest time and skill in making sure they receive their money when it is due and the winners will set an example to all that strong credit management procedures can help to combat late payment from customers,’ explains Rene de Sousa, BPPG representative for the Chartered Institute of Purchasing and Supply and one of the award judges.

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