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Debt Management

Pay attention to

invoicing – part 2

By Roger Symes, Director, Marine Debt Management

the ship owner) and to be satisied as
to their ability to pay. As one leading

shipmanagement company wrote to
suppliers: “Whilst in the midst of the

current economic climate, we feel it

appropriate to remind all suppliers that
act as agents only, the settlement

of invoices is funded solely by our
principals. Whilst every effort is made

to ensure timely payment, this cannot
always be guaranteed. In the case of

any doubt or concerns with regards to
solvency or credit reliability, suppliers

will be guided to make independent
enquiries and credit checks of our

principals in determining supply and
credit issues”.

This will be well known to many

readers of this article. However, the
invoices passed to us for collection

indicate that it is far less familiar to
employees responsible for generating
I
nvoices contain two types of It is rare for ship suppliers to deal invoices on a daily basis. This is the
information. Static data, which is directly with ship owners, be they reason why so many invoices are

rarely changed and is often pre-companies or human beings. After 40 dispatched incorrectly addressed.
printed, and variable data which differs years in the business, I have yet to meet Everyone in your organisation needs to

with each supply.anyone who would admit to being a ship understand the importance of correct
In the last issue of The Ship owner! This is because, while ships can invoicing and the resultant beneits.

Supplier, I highlighted several reasons generate great proits, they can alsoTaking extra care to get invoicing right

why payment is delayed due to the be responsible for even bigger losses. provides warning of unforeseen risks,
incomplete or muddled presentation Ship owners like to distance themselves fewer payment delays and reduced

of static data. In this issue, I consider from potential liabilities and often collection costs.
the most important aspect of variable employ complex corporate structures When raising every invoice, it is

data, that is the need to correctly to achieve this goal.always worthwhile asking “Who is liable
address invoices.Ship suppliers most commonly for payment of this invoice?” and “Am

Close to half of all invoices passed receive purchase orders from companies I addressing the invoice to them?” If
to Marine Debt Management for acting “as agents only” or “as managers unsure, a check should be made against

collection are incorrectly addressed. only” on behalf of the elusive ship owner. instructions contained in the original
Some suppliers do this deliberately, The purpose of these phrases is topurchase order. In case of doubt,

believing that it will enable them to notify the supplier that the company clariication should be obtained from

hold multiple parties liable for payment. placing the orders denies liability forthe purchaser and, if deemed necessary,
That rarely proves to be the case. More the payment of resultant invoices. The veriication obtained from a third-party.

often it causes confusion, which at best words should alert the supplier to the In the next issue of The Ship Supplier
irritates customers and at worst results urgent need to identify the party liable I will address other invoicing issues,

in invoices remaining unpaid.for payment (most likely but not alwaysincluding e-invoicing. u

44 | The Ship Supplier | Issue 69 2016