RIABU - Tips and tools for getting paid on time by your customers

Economic uncertainty from Brexit means bad cycle of late payments in the UK

More than half of B2B sales in the UK are now made on credit as opposed to cash transactions, as businesses try to make themselves more attractive to potential customers amid the uncertain climate of Brexit. But credit can also lead to a cycle of late payments and 45% of UK businesses are reporting that they are delaying payments to their own suppliers due to being victims of late payments themselves.

RIABU’s Simon Littlewood and Mark Laudi talk about how to make sure payment terms are agreed upon by all the parties so that your customer is more likely to pay you on time.

The importance of a credit policy

In order to get paid on time, we need to be able to establish the credit policy early, at the start of the agreement.

But some suppliers might think it will interfere with their process of selling their service if they were to reveal their credit policy at the start.

What can we do to ensure that all terms and conditions are clear to the parties involved at the beginning?

In this podcast, RIABU's Simon Littlewood and Mark Laudi discuss the importance of drafting a credit policy when you start a relationship with a customer.

What can young gamers do to counter late payments in the e-sports industry?

E-sports, a rising industry in which young people sit on chairs and play games against one another, is an industry that will hit US$1 billion in revenue this year. But it is populated by tournament organisers who do not pay their freelancers on time.

RIABU’s Mark Laudi interviews Simon Littlewood on his experience of having a son who plays in an e-sports team and the considerations for any e-sports player when chasing payments.

Football club in Macclesfield blames Brexit for not paying its staff

This is the first time we’ve heard of this reason – a lower league football club (fourth tier) in England has said it is unable to pay its staff and players because it was still waiting for "international payments" and said Brexit was having an impact on its finances.

Even though Brexit still hasn’t happened.

RIABU’s Simon Littlewood and Mark Laudi discuss how uncertainty from Brexit can cause massive disruptions to the supply chains of businesses, even before the United Kingdom leaves the European Union, or if it does at all.

The Evils of Reverse Factoring

We are exploring reverse factoring in this week’s podcast.

Reverse factoring involves the customer extending credit to the supplier. So the customer pays up straight away, minus a certain margin. Although it is one way for SMEs to get their customers to pay on time, it asks the question of whether the smaller company should even enter a relationship with such an imbalance of power.

RIABU’s Simon Littlewood and Mark Laudi talk about why some companies agree to accept a discount for on-time payment, and how to avoid giving discounts in the future.

SMEs more likely to pay other SMEs late in India

SMEs in India take longer to pay, and they take longer to get paid. And SMEs are borrowing to pay for late payments. And on top of that they have to pay GST for any transactions. This cycle of bad payments is creating a lot of stress on companies.

RIABU’s Simon Littlewood and Mark Laudi talk about whether getting larger companies as customers is the better way to break out of this vicious cycle. But can they even choose their customers? Is the 45-day rule even effective, and do companies even invoke the law when relationships are at stake? Listen to find out how you can get a free coffee from Simon Littlewood!

Singapore Fintech Festival 2019 Round-Up

RIABU went to this year’s Singapore Fintech Festival at Singapore Expo, and we found a lot of platforms that want to lend money to SMEs according to their algorithms.

But none has promised to help SMEs get paid faster. And we know most of the SMEs that need the money will still not be able to make the credit score of these fintech lenders.

RIABU’s Simon Littlewood and Mark Laudi talk about why the human touch is still important in this age of AI and automation.

Know Your Customer, and nowadays, your customer’s customer, too

KYC, or Know Your Customer, is a process businesses go through to verify the identity of their clients.

This can be a serious matter as companies that do not do their due diligence and get to the bottom of their customers’ dealings run the risk of being culpable in court if they are found to be involved in money laundering or terrorist financing.

Now, as if it is not complicated enough, banks, insurers and financial institutions are demanding that their companies provide information on their customers, and their customer’s customers, thereby extending the acronym to KYCC (Know Your Customer’s Customer).

RIABU’s Mark Laudi and Simon Littlewood discuss whether businesses are really heeding the call to do more due diligence on their customers.

What can you do if you’re suffering as an SME in Hong Kong?

The protests in Hong Kong, which have been going on for almost five months, are taking a toll on the city’s economy and local businesses. According to the government, retail sales in August fell 23% from a year earlier and were the worst on record.

RIABU’s Simon Littlewood and Mark Laudi talk about what SMEs that are suffering in Hong Kong’s economic climate can do to reduce their risk in such a tough situation where their customers are likely struggling as much as them.

Malaysian contractors still waiting on payments of RM52 million

About 920 Malaysian contractors are missing payments of around RM 52 million. And politician Datuk Seri Dr Wee Ka Siong has questioned why there are delays in payments made to these contractors who built houses as part of the government’s RMR1M project.

RIABU’s Simon Littlewood and Mark Laudi talk about how the flow of money to the suppliers can be changed, especially in government payments.