As mentioned in a previous blog, good credit management is essential to any business and no company can afford to not take it seriously, especially when the availability of credit is tight. The final section of our basic principles of credit management is outlined below:
Ensure invoices are correct - A disputed invoice will not be paid so avoid giving the customer any excuse to contest the invoice. This requires accuracy such as clearly specifying the goods or services being paid for and being sure to quote the customer order number.
Manage your debtors - For large or important amounts, telephone before the due date to make sure the payment is still on track. If a payment hasn’t arrived, don’t be afraid to ask for it and be assertive about when the payment is expected, ensuring they fully understand the consequences of non-payment. An accounting package can go a long way to help you manage debtors as it can list and track the invoices that are overdue and monitor the performance in getting paid.
Chasing payment - There are various ways to retrieve payment if the debtor has not been cooperative. Firstly, consider exercising legal rights under late payment legislation to charge penalty interest or add debt recovery costs. If that doesn’t work, then you can hire a specialist debt collector to help or consider taking court action.
Hello!
We have a form for debt recovery clients on our website that could be helpful when collating information regarding your debtors - you can find it at http://www.dale-law.co.uk/commercial.php?page_number=2& I hope your readers find it useful!
Posted by: Becky | 30 October 2009 at 01:29 PM