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Who's got your money ?

Every time you open the papers, there are articles about the credit crunch, banks seeking assistance and mortgages becoming harder to find.

Inevitably, this concentrates everybody's mind on cash flows and the cliché that cash is king resonates ever more loudly.

As a result, accounts departments across the land are becoming ever tardier in paying invoices.  So how do you make sure you recover what’s due, without upsetting good customers in the process? 

One way to minimize bad debts is to check out your customer before dealing with them, as you cannot get money from those who have none – the debtor’s prison no longer exists! Credit checks and looking at accounts are possible options, particularly for large orders, but potential clients, especially big ones, may become offended and take their business elsewhere.

You should make sure that you have a credit control procedure that identifies the problems early enough. It’s much easier to deal with (or even write off) a debt of a £1,000 than a debt of £20,000. Don’t allow large amounts of debt to run up in your keenness to win or retain the business.

Make sure you have a system in place that enables you to arrange for staged or interim payments, or even payments on account.  At least that way all the paperwork is in order should you need to take things further.

Remember that no matter how in the right you may be, formal debt collecting is a rigid process with all sorts of procedures and rules to be complied with. As a result it can take some time. And even if you win, it’s down to you to take the necessary actions to recover the money you are owed.

Barr Ellison offers a prompt, efficient and cost effective debt collection service. Please contact Sarah Payne for more information.

 

For further information contact Sarah Payne.

The information given in this article is of a general nature only and should not be considered as advice applicable to any particular situation for which specific request should be made to us.