Recent reports have suggested that the recent credit squeeze will lead to bank tightening up on loans and overdrafts, putting pressure on resellers. At the same time, product distributors are likely to put a hold on extending further credit in the run-up to what is usually one of the busiest times of the year.
As a consequence, resellers will need to be even more careful about avoiding late payments and incurring bad debts and DMSL is urging them to use the e-bcm service to minimise their exposure to risk. “Checking the credit-worthiness of a customer makes sense at any time but with the credit squeeze now putting pressure on everyone, resellers need to get their act together fast”, says John Carter, Managing Director of DMSL. “The e-bcm service is easy, affordable and effective and the more channel businesses that use it, the more effective it becomes.”
Subscribers to the e-bcm service can share information about bad and late payers so that they are quickly alerted to any organisation that is running into trouble. Subscription rates start at just £2.49 per month.
Many resellers are already using e-bcm’s on-line credit reporting, automated debt chasing and factoring services to streamline their cashflow but Carter estimates that there are still thousands of business that are putting themselves at risk by not paying enough attention to financial management.
“Resellers have traditionally, always wanted to get on with the job of doing business – credit checking tends to hold that process up but it is the only way that resellers can ensure that they minimise their exposure to bad and late payers. As banks and product distributors put squeeze on credit, they will start to feel the pain and the last thing they need on their hands is a nasty bad debt.”