Poor cash flow is often cited as the primary reason for businesses failing.
You can protect your business by having systems in place that make collecting unpaid invoices as hassle free as possible.
Here are five top tips from the DebtFast team to help you avoid being owed money in the first place
- Get the correct contract in place – whether you are trading on your own standard T&Cs or otherwise, ensure the contract is appropriate for the transaction.
- Make sure the contract is being used – when you have gone to the time and trouble of getting an effective contract ensure that it is actually being used and the terms govern the relationship with your customer.
- Have a strong paper trail – don’t give potential bad payers the opportunity to delay payment. Common excuses such as “I didn’t receive the contract/terms and conditions” or “I had a conversation with X who agreed Y” – aren’t good enough. This can all be avoided by a robust paper trail evidencing what was agreed.
- Be vociferous, have a clear credit control policy and do not deviate from it. Debts rarely age like fine wine!
- Demonstrate escalation – with debt collection, like all litigation, it is important to demonstrate to the debtor that the situation is getting more critical and you are moving along a clear path (not going round in circles).
If you encounter regular late payments, our fixed fee debt service, Debt Fast, is tailored to your specific needs and is very beneficial if you experience high volume debt collection. We act as an extension of your own credit control and work with you to ensure that our service integrates with your internal procedures.
Download our DebtFast e-brochure to find out more about how this service can help you and your business.
For more information or advice please contact us and a member of the Debt Recovery team can help you.
The contents of this article are intended for general information purposes only and shall not be deemed to be, or constitute legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article.