CM September 2020

INTERVIEW
AUTHOR – Sean Feast FCICM
during lockdown.” Research by business
groups across the country support these
fears. The majority of small businesses (62
percent) have been subject to late or frozen
payments in the wake of the COVID-19
outbreak, according to the Federation of
Small Businesses latest study of more than
4,000 firms. Sinead believes that risk insight
technology will play a big part in ensuring
small businesses avoid late payments from
unreliable clients.
“Right now, business owners need to be
well informed about the clients they are
doing business with. We have all heard the
phrase ‘Know Your Customer’ but what
does it mean for your business? Put simply,
it means knowing when to walk away from
scenarios which could put your company at
risk. For many business owners, saying no
to a prospective client goes against every
instinct they have. But in fact, having the
wherewithal to reject unfavourable payment
terms from unreliable customers is crucial.
“In order to make that call, it’s imperative
that you have solid data to back up your
decisions. This is where a sophisticated risk
insight tool can help.”
MODERN TOOLS
Modern risk insight tools allow business
owners to view their customers’ credit score
at the touch of a button, giving them the
opportunity to make informed decisions
based on accurate data.
Platforms like Satago, Sinead says, go one
step further, informing business owners
of their customers’ risk band, suggesting
workable payment terms and notifying them
of credit breaches within their sales ledger.
This in-depth customer analysis is invaluable
to SMEs, making it easier for them to make
choices that will ultimately future-proof
their business.
In the past, this level of insight was only
available to those who could afford it, now
it’s accessible to everyone.
“Tools like Satago level the playing field,’’
says Sinead, “by giving all businesses, no
matter how small, access to the information
they need to protect their business from the
threat of late payments and bad debt.”
In addition to utilising risk insight tools,
Sinead encourages all organisations to
automate their credit control, a topic she
discussed on the recent CICM webinar.
“I don’t have to tell CICM Members that
persuading customers to pay their bills
on time can be extremely frustrating,” she
says. “For businesses with a wide customer
base, manually chasing payments is time
consuming. The average business spends
around two days a month sending invoice
reminders – hardly a good use of anyone’s
time. “For companies with a smaller
number of clients, chasing payment can feel
awkward. Some business owners shy away
from sending payment reminders or make
regular concessions for fear of damaging their
customer relationships.
“Automated credit control facilities solve
these issues, allowing you to manage your
invoice chasing process easily. There are
plenty of solutions out there, but the best ones
integrate with your existing mail server, as
Satago does, allowing you to communicate with
your customers in a way that feels personal,
even when automated.”
CLOUD SOFTWARE
Sinead credits cloud software with making it
possible for the large majority of us to continue
doing business as usual, despite the lockdown
restrictions.
“There’s no doubt that the cloud has changed
the way we do business forever,” says Sinead.
“Whether it’s Slack, Microsoft Teams or Sage,
technology is enabling us to collaborate in
new and exciting ways, even when we’re not
physically in the office.”
Over the past few years, one of the fastest
areas of growth has been within the fintech
space. Platforms which integrate with cloud
accounting software, make collaboration
between credit controllers, accountants and
business owners easy. As well as freeing up
time by automating tasks that used to require
hours of manual work.
“The best pieces of software don’t just save
you time,” says Sinead, “they offer data-driven
insight that you can easily share with your
wider company and clients, allowing everyone
to get on the same page and make informed
business decisions.
“For me, this is where technology gets
exciting. By offering companies a level
of financial clarity that was previously
unattainable for many, technology is providing
solutions to the everyday cashflow issues that
cause so many enterprises to fail within their
first few years of trading.”
“If your business does experience cashflow
gaps, my advice is to always talk to your
accountant or financial advisor. They will
steer you away from expensive options (such
as dipping into your overdraft) and towards
responsible financial solutions which can ease
cashflow concerns in the long term. If you’re
interested in learning more about Satago’s fast
and reliable invoice finance facility, you can
always get in touch with our team.”
While it is impossible to predict what the
coming months might bring, Sinead believes
that businesses will continue to think
progressively and use technology to overcome
the obstacles that threaten their growth,
particularly in regards to cashflow.
“If we can make even a small dent in the
enormous £51.5bn burden caused by late
payments, more businesses will have a chance
to survive and thrive in the coming years.”
A reminder that CICM members
are invited to use Satago, free of
charge, for three months. There is
no obligation to continue once
the three months has elapsed.
Visit www.satago.com to register.
Advancing the credit profession / www.cicm.com / September 2020 / PAGE 46