Debtor Day Reduction: How to Reduce Debtor Days

What is a Debtor Day

The term Debtor Day refers to the average number of days it takes a company to receive payment from its customers.

Click Here: To Calculate Your Company’s Debtor Days

Ideally your company’s Debtor Day figure should be as low as possible.

According to research, on average UK business have higher Debtor Day figures than companies in Europe. In other words, they suffer more from slow payments.

For instance, UK businesses have an average of 70 Debtor Days compared to 48 Debtor Days in Germany.

How OnStop Can Help Reduce Debtor Days

We offer a unique two tiered service to help our members reduce Debtor Days.

1. We Reduce Debtor Days by Encouraging Prompt Payment

In our experience of chasing late payments, letters from third parties normally get a faster response than letters sent out by the company which is owed money.

Members of OnStop can choose from a range of professionally written letters to send to customers who owe them money. These letters encourage them to settle any outstanding payment issues within ten days or face being registered by OnStop.

95% of companies that receive an OnStop letter pay within the ten day window, thereby reducing our members’ Debtor Days.

Click Here: To Join OnStop and Reduce Your Debtor Days

2. We Take Preventative Measures to Reduce Debtor Days

OnStop has a national database of registered companies that have still not paid what they owed after receiving a reminder letter from us.

Any member can search this database to see if a company that he or she is planning to do business with has been registered.

This is a valuable source of information for reducing Debtor Days.

Click Here: To Join OnStop and Reduce Your Debtor Days

Cost of Joining the OnStop Debtor Day Reduction Programme

We charge an annual membership fee and £1 for each letter that we send out to your customers.

The membership fee is based on your company’s turnover:

Turnover of £500,000 or less: £95 plus VAT

Turnover of £500,001-£1,000,000: £200 plus VAT

Click Here: To Join OnStop and Reduce Your Debtor Days