Small BusinessMaximise your cash flow & grow your business



The cost of late payments

A major challenge for small businesses offering service or products is late or non-payment. What more could your business do if you were guaranteed to be paid in full and on time?

Selling

As a small business selling goods and services to the public and other companies you face the following challenges:

  1. Will we get paid in full and on time? We’re working in a competitive, low-margin environment and can’t afford late or non-payment.
  2. How can we avoid the need for cash-backed letters of credit or bank guarantees? We can’t afford the upfront cash outlay and they take weeks to put in place.
  3. What do we do if the customer argues that the goods or services do not meet their expectations when we’ve met the agreed specifications?
  4. What if the customer cancels the order after signing the contract? We will have outlaid a lot of monies on labour and materials. How can we recover our expenses?
  5. If things go wrong, our only options will be to engage a debt recovery agency or hire a lawyer to chase the debt both of which will take many months and be very expensive. Our cash flows simple won’t be able to cover this. And what are our chances of successfully recovering monies from a company much larger than ours?

Buying

As a small business buying goods and services from other companies you face the following challenges:

  1. Will we get exactly what we have paid for? What recourse will we have if we’re not happy with the quality of the goods or services provided or if they are delivered late (or not at all)?
  2. We've been asked to pay a large deposit upfront before the business will start any work. What happens if they get a larger order from another customer? Will we get pushed down the queue?
  3. What can I do if the business sends me a final bill that is above the original agreed price due to 'unforeseen circumstances'? They're a large company and they can simply report me to a credit agency if we don't pay.
  4. What can we do if we don't have the technical expertise to argue against changes to the goods or services made by the business? We’ll be arguing against their whole team of experts.
  5. If things go wrong, our only option will be to hire a lawyer, which will cost more than the value of the goods or services that we need to purchase. And what are our chances of ever winning a legal case against a large corporation?
Who is a Contract2Pay referee?

An independent, subject matter expert who is appointed only by the mutual agreement of the buyer and the seller.

The Solution

What if there was an independent expert that you could refer disputes to for rapid and fixed cost resolution? In all sports, competing players and teams agree to abide by the decision of an umpire or referee. Disputes are resolved rapidly in accordance with the laws of the game and without the time and expense of hiring lawyers and preparing court papers.

Contract2Pay allows a buyer and a seller to appoint an independent referee by mutual agreement. If a dispute arises then it can be referred to the referee for a rapid decision. If either buyer or seller disagrees with the referee's decision then (for a nominal fee) it can be appealed to a panel of three independent referees, all subject matter experts, who will make a final and binding decision.

Contract2Pay gives small businesses the power to resolve contractual disputes while avoiding costly, lengthy and stressful legal action. Maximise your cash flow and grow your business. Sign up for Contract2Pay today.

Faster, cheaper & fairer results for buyers and sellers


Benefits for Sellers


  1. Fast, low cost dispute resolution: Disputes are resolved, in most cases, within days or weeks not months or years. The dispute resolution fees are capped as part of the transaction fees. Say goodbye to huge legal bills.
  2. Fair and transparent: Whether you are a large multi-national, sole trader or a private individual, the dispute resolution process is conducted impartially by a subject matter expert based solely on the documentation and history on the platform.
  3. Get paid in full and on time: Milestone payments are released immediately when approved by the buyer. If the buyer does not approve the release of the payment then the seller can escalate the matter to the independent referee who can release the payment (either in full or part).
  4. No need for cash-backed letters of credit or bank guarantees: Contract2Pay replaces the anomaly of sellers needing to supply letters of credit or bank guarantees. Instead each milestone payment held in escrow until the buyer is satisfied with the delivery of each milestone.
  5. Eliminate payment delays due to claims that goods or services do not meet the buyer’s expectations: The seller can escalate any such claims to the independent referee, a subject matter expert, who can review the claim against the agreed specifications and release any withheld payment.
  6. Cover the costs of cancelled orders: In the case of cancelled orders, the referee can make a decision (at the request of either the seller or the buyer) and release funds to the seller from any milestone payments to cover the seller’s fair and reasonable costs.
  7. No need to engage expensive and time consuming lawyers or debt recovery agencies to resolve disputes or pursue bad debts: All milestones are pre-paid into escrow and, if a payment dispute arises, then it can be referred to the independent referee for a rapid decision and release of funds to the seller.


Benefits for Buyers


  1. Fast, low cost dispute resolution: Disputes are resolved, in most cases, within days or weeks not months or years. The dispute resolution fees are capped as part of the transaction fees. Say goodbye to huge legal bills.
  2. Fair and transparent: Whether you are a large multi-national, sole trader or a private individual, the dispute resolution process is conducted impartially by a subject matter expert based solely on the documentation and history on the platform.
  3. Monies held in escrow: All milestone payments are held in Contract2Pay's partner escrow accounts and cannot be released without the buyer’s approval or, in the case of disputes, the referee's instruction making it impossible for the seller to take a deposit and use it for some other purpose.
  4. No need for cash-backed letters of credit or bank guarantees: Each milestone is pre-paid so the seller has 100% confidence in a buyer’s ability to make payment.
  5. Eliminate unplanned cost increase and contract changes: All cost increase and contract changes must be submitted by the seller for pre-approval by the buyer. If they haven’t been changed and agreed on the platform then no additional funds are due to the seller.
  6. Access to an independent subject matter expert: No need for a buyer to employ a team of experts to hold a seller’s team to account. Simply escalate disputes or proposed contract changes to the referee for resolution.
  7. No need to engage expensive and time consuming lawyers to resolve disputes: If a dispute arises then it can be referred to the independent referee for a rapid decision.
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