When an overdue invoice becomes a Debt, it might already be too late !
2018 brings with it LPL’s 40th year of trading and we are proud to have served you for so long during this time.
LPL was established at the dawn of the credit explosion and the massive increase in credit card usage.
During this time LPL has maintained the approach that LPL clients use our services as a seamless extension to your own credit control functions, when needed.
From the many external methods of credit control support available to you from Factoring, Invoice discounting, Credit Indemnity, to name a few, LPL has always strived to promote the fact that it is your own internal Credit Control safeguards and precautionary measures which will minimise the risk of unauthorised and/or extended credit .
With regards to slow or problem payers the key factor has always been knowing when to act in escalating the matter to LPL.
As we start what we believe to be another challenging business year we want to remind you all that LPL services are readily available to you; from credit control advice or fast Credit Reports. LPL are here to support the smallest doubt troubling your well proven credit control ‘gut feel’, allowing you to tackle Problem Accounts way before they become a severe problem. But of course LPL is always available for collection matters still requiring third party intervention.
In any industry we have all seen profit margins reduced and the fine lines between cash flow and profit has become even tighter to control.
Some years ago we came up with the slogan:
“Control Credit before Credit Controls you!”
During 2017 we saw yet again some big companies fold: Monarch Airlines, Multi York (Furniture) and Misco to name but a few.
And with the year starting with yet more problems for the likes of Toys R Us.
Therefore now more so than ever it is vital that you keep a regular check on your aged debt, 60 or 90 days can be too long a time when it comes to collecting.
While it is often said that aged debt may only represent a small percentage of your total turnovers…….I am certain that the powers that be within your company would jump with joy if they could increase that turnover figure by the same amount?
Whether you are a Small or Medium sized company or a blue chip PLC, we have all learnt in recent years that a reasonable DSO figure is considered an asset and essential to an improving cash flow situation. In 2017 LPL maintained its total Collection and Clear up rates in the regions of 85% and upwards.
When it comes to all things ‘Credit’ related our advice is available at any time. The ability for us to write to your customer via LPL demands or a Solicitor’s Letter before Action is already set up and in place via your pre-paid Voucher Units.
Alternatively, if you deem a potential instruction more problematic our Fast Track service allows one of a highly trained account handlers to establish immediate contact with your customer to manage and monitor effective movement of the account.
But even more importantly, we must not leave an overdue account too long, otherwise, with the strains that businesses are currently facing, a Slow Payer can fast become a Bad Debt!
A seamless credit control process not only generates a professional perception of your business but increases cash flow. Over the past 40 years LPL has continued to help businesses achieve just that.
For further information or should you wish to discuss any credit related matters please do not hesitate to contact us on: 020 8551 4019.