01353 864949

EDDI - Eazipay's Direct Debit Interface. An online portal to access and manage your Direct Debit accounts. find out more

the collapse of carillion, a warning to all smes

January 26, 2018 

The tragic collapse of Carillion was, it seems, a disaster waiting to happen, with no shortage of pundits lining up to confirm that they saw it coming and that the warning signs were there for all to see.

But what about the thousands (up to 30,000) smaller companies which didn’t see the writing on the wall, who don’t spend their time poring over Annual Reports, and which may now find themselves going to the wall along with Carillion? How do SMEs protect themselves against the unthinkable – that a major UK company with multiple £billion on-going contracts, may topple over and drag them down as well.

There is no shortage of well-intentioned advice aimed at helping SMEs avoid their biggest nightmare, being starved of payments while being offered more work only to find that they are in so deep, they cannot pull out of the downward plunge into bankruptcy.

According to Luisa Grey a Director with Direct Debit processing company, Eazipay Ltd, there is no single magic bullet to being paid on time, but there is one simple technique that will sound alarm bells if your customer is running into cash flow problems: insist that your invoices are paid by Direct Debit.

“There are only two ways that a Direct Debit can fail, either because there are insufficient funds available to pay the invoice or because the customer has cancelled the Direct Debit.

“If either of these situations occur, the company claiming the money will have an early warning that something is seriously awry and can take remedial action to prevent the losses mounting up to the point where they face insolvency.

“The problem for too many SMEs is that the desire to have continuity of work overrides the need to be paid on-time and unpaid invoices are allowed to pile-up. If a Direct Debit fails, then a company’s maximum exposure is one invoice, not multiple invoices.

“The demise of Carillion should send shock-waves through the entire SME sector and is a clarion call to all SMEs to re-examine just how robust their payment processes are and take all the necessary steps to protect not only their businesses, but the livelihood of their employees.

For further press information, please contact:

Damion Clark at Real PR (Consultants) LLP. Tel: 01353 667934 or 07789 911314 Email: damion@realpublicrelations.com

NOTE! This site uses cookies and similar technologies.

cookies : our website uses cookies and similar technologies to help make this website better : read more here or are you happy to accept ?



Cookie Policy

Our Cookies Policy explains what cookies are, how we use cookies, how third-parties we may partner with may use cookies on the Service, your choices regarding cookies and further

What are cookies

Cookies are small pieces of text sent by your web browser by a website you visit. A cookie file is stored in your web browser and allows the Service or a third-party to recognize you and make your next visit easier and the Service more useful to you.

How Eazipay Ltd uses cookies

When you use and access the Service, we may place a number of cookies files in your web browser.

We use cookies for the following purposes: to enable certain functions of the Service, to provide analytics, to store your preferences, to enable advertisements delivery, including behavioural advertising.

We use both session and persistent cookies on the Service and we use different types of cookies to run the Service:
- Essential cookies. We may use essential cookies to authenticate users and prevent fraudulent use of user accounts.

For the full disclosure section, including all types of cookies, please click here.

Third-party cookies

In addition to our own cookies, we may also use various third-parties cookies to report usage statistics of the Service, deliver advertisements on and through the Service, and so on.

What are your choices regarding cookies

If you'd like to delete cookies or instruct your web browser to delete or refuse cookies, please visit the help pages of your web browser.

Please note, however, that if you delete cookies or refuse to accept them, you might not be able to use all of the features we offer, you may not be able to store your preferences, and some of our pages might not display properly.

More information about cookies

If you would like more information regarding Cookies please visit the below site:
ICO (Information Commissioner’s Office) - https://ico.org.uk/for-the-public/online/cookies/