Business goes online to deal with post strikes

Data published by the London Chamber of Commerce suggests last week's strike cost the capital's businesses £200million alone.

Wharf-based firms rode out the strike using the web and electronic payment options but admitted cash flow had been affected.

Michael Donovan, general manager of Formula Won Recruitment, based in Heron Quays, said: "I have written to all my debtors and asked them to make payments by BACS. We are mostly electronic anyway and do all of our correspondence online.  

"I have had some phone calls chasing us for payments that we have not even received an invoice for, but as for making payments we know about, we will do it by BACS or debit card from now on. I even email our invoices now.  

"Our cash flow has been affected. We have dates that people have to pay us. If the payment fails to arrive they will just blame it on the postal strikes.

"The strikers are shooting themselves in the foot, there is just too much uncertainty. I see a time in the future when even a bank will accept an instruction by email.

"We had a discussion in the office about sending Christmas cards, and we probably won't bother - what's the point if they arrive in January? I can see us doing less and less by post."

Raymond Chaw, managing director of Lau Property and Insurance Services, based in East India Dock, said: "The strike has affected me greatly, I have a lot of salaries to pay and I can't have the cheques getting lost in the post.

"We have been considering using other people for a while. They are just so expensive, but we will have to change. It has cost me. A lot of business we rely on is done by confirmation of payment through the post and receiving contracts from the big corporations in the area. If those are not received, we both lose out.

"I will now do as much as possible by email. The Royal Mail must consider its reputation."