Question Time: Business Reports and Late Payment

Ade PottsAde Potts, Managing Director of Experian Business Express, answers your questions.

What are the early indicators of financial trouble?
Late payment is a key indicator. On-going monitoring and addressing issues such as late payment will help lessen the risk of losses. Over half of SME’s check their customers’ credit ratings once a year; this is not often enough to identify potential problems. Setting up alerts on your customers can give you all the information you need.

How can businesses protect themselves from late payment – especially over the December and January months?
Pressures on finances over the next couple of months will mean some of your customers will prioritise differently and miss paying invoices. Issue invoices as soon as you can and check all the relevant details, also include a PO number and include the budgets holder’s name. Call your customers five to seven days after dispatching the invoice to ensure that they have been received.
It’s just as important to review the credit position and payment performance of your existing customers as it is new ones. If a business starts to show signs of a deteriorating financial position you may have to reduce the level of credit given, shorter payment terms or ask for a deposit upfront.

What is the difference between the Delphi score and your old score?
Experian Business Express utilise Experian’s breadth and depth of data to give our customers a more complete view of their customers. The Delphi Express score is not only one of the most predictive scoring models in the industry it’s also specifically designed for use by SME’s and utilises a greater number of data variables, such as Payment Performance information and directors other appointments.

Why should I migrate to Experian Business Express?
Experian Business Express uses all the best bits of Riskdisk and combines them with the expertise and knowledge of Experian, to provide customers with one of the best online portals to help protect and grow your business. The user friendly products help you to improve cash flow, find new customers and prevent fraud – all from one login. To date, over 30% of our customer base have already migrated over to our new system.

Got a question for Ade? Email us.