BACS top ten tips
Boost cashflow overnight
When you're paid electronically, the funds are cleared and available for use on the day they're received earning interest immediately as you don't have to wait for a cheque to clear.
Always chase early. A polite call or email can often pre-empt a payment problem. Send a letter to suppliers encouraging them to pay you electronically (whilst it's often used as an excuse, some cheques actually do get lost in the post). Being proactive will help build relationships with your customers' accounts department.
Do your homework
Avoid risks when supplying new customers by running a credit check. There are many associations and independent bodies who can provide status reports for a reasonable fee.
Demand interest on late payments – you are legally entitled to it. For information on your legal rights refer to the Late Payment Legislation on this website.
Act fast and save money
Our research suggests that transactions made using BACS Direct Credit costs significantly less to process than a cheque payment.
Play to your strengths
BACS Direct Credit saves time and money. Why waste time signing and paying in cheques when you can let a highly automated system take the strain? You're then free to focus on more productive issues.
They save, you save
Cheque stationery can be expensive due to the need to prevent cheque fraud. BACS Direct Credit eliminates the cost of cheques and reduces postage and other costs.
Better payment terms
Use a reliable payment system and you've a good argument to negotiate more favourable payment terms from suppliers.
You win, we all win
If you get a reputation as a late payer, word will eventually get around. If all businesses use the tools at hand to settle accounts quickly and efficiently, the economy as a whole will feel the benefit with positive spin-offs all round.
Be upfront about it
It makes sense to explain from the word go that you actively encourage automated payments. It's the best way to start any business relationship. Make sure you put your sort code and account number on all your invoices - and print "Pay Me Direct" alongside.