Six Point Plan For Getting Paid On Time

One of the essential activities of a healthy business is good
credit control There is an old business saying: “Turnover for
Vanity, Profit for Sanity” but the last line: “Cash is Reality”
is probably the most important, so here are some ideas on credit
control and collection strategies Most of these may seem like
common sense but we are always surprised about how few of these
suggestions are actually put into practice Adopting a
co-ordinated strategy can often bring about a swift and
significant improvement
Six quick tips to improve cashflow:
1 Appoint one person to be responsible for debt collection -
make it a priority within their role 2 Credit check new
customers and set credit limits, stick to them 3 Make it clear
when invoices are due for payment 4 Send invoices promptly as
soon as work is completed 5 Send reminders when payment is due
and again a week later 6 Make sure the paperwork is supported
by a call and ensure you get agreement on a course of action
Always follow-up
Six point debt recovery strategy:
Have a plan for recovering late payments – especially from
regular offenders
1 Send regular statements 2 Call to confirm the due date and
that a payment will be made on schedule 3 Establish a
one-to-one relationship with whoever is responsible for
arranging payment/drawing the cheque/authorizing the cheque run
4 If you can’t get a commitment to pay, make it clear when you
will call again Don’t be put off by excuses, get agreement to a
course of action Make sure you call on schedule 5 If all else
fails, send a 7 day letter with a copy of the invoice, making it
clear what action will follow if they do not pay within 7 days
Never make idle threats 6 If all else fails, Instigate a claim
through the County Court The procedures are not too difficult
and you do not need a solicitor Often the issue of ‘official’
documents from the court will be enough to guarantee payment
Few credible businesses wish to gain a bad credit rating
following a County Court Judgment Using the personal touch is
perhaps the most important part of any credit control regime
Make sure that when you call, the debtor already knows who you
are, which business you represent and why you are calling
Creating a one-to-one relationship with the person responsible
makes it easier to put your case strongly If a company is
struggling to make payments you need to make sure yours is at
the top of the list!
For more help with cash flow strategies contact us:
wwwmercantile-groupcom

Tags | business, cheque, collection, common, invoices, payments, recovery, reminders, sanity, strategy, vanity