19.02.2016 | Emily Hazell | General
Are you worried about always chasing late payments? Well now the worrying can stop. PACT stands for ‘please abide contract terms’ and is a scheme that has been set up to help small businesses against late payments.
The scheme allows you to improve your cash flow, reduce your costs and recover your debts. Studies show that the average UK SME has more than £30,000 in outstanding payments and is spending approximately £677 a month to try and recover the debt. Now, for just £10 per month the PACT scheme can help. It provides a list of terms to send out to customers, a PACT logo to put on invoices and a set of pre-agreed procedures if a payment is not made.
PACT is able to send automated emails to the debtor and inform credit agencies if payment is not made. They are also able to name and shame debtors at defaulter.com which is an online register. It allows users to enter a debtor’s company name to find out if it has a history of late payments and access debtor information.
Chris Hawthorn, founder of the PACT scheme, believes that these steps will increase the chance of businesses recovering debtors whilst still maintaining relationships with customers. Although mediation will be the first step there will be ‘genuine repercussions’ for late payers.
The PACT scheme’s target is to hit 50,000 members by the end of 2016. So now is the time to take control and get the money you are owed.