A New year is often the perfect time to implement new procedures and practices into your existing Business Credit Control procedures.
An effective Credit Control strategy can help you keep on top of your cash flow and keep your Businesses finances healthy and operating at maximum profitability.
Very often, Business owners focus on acquiring new business in the hope of fresh sales and lack the same sense of purpose to deal with the back of of operations which is to ensure payments are made on time.
As any Business owner will agree, time spent chasing late or non paying customers can have a catastrophic effect on your time and resources. A tried and trusted method of minimising disruption to cash flow to to ensure you have effective credit control measures in place.
Whilst we specialise in the recovery of unpaid Business Debts, we also like to help our clients ensure risk is kept to a minimum. After speaking to some of our Industry leading Debt Collection Officers, we thought we provide some pointers.
Here are our 5 Expert tips to keep your Businesses Cash Flow optimized in 2019.N
Monitor your customers Credit rating
You may already be doing this and it could seem obvious but you would be surprised how many do not perform this simple task.
Even though your customer may have had an excellent credit rating the first time you checked it, things can quickly change and you will want to be aware of any downturn in their fortunes.
There are many Business Credit rating performance software packages that can assist you with this and will flag any anomalies. Alternatively, Performing regular spot checks can assist with managing risk.
Incorrect invoicing is a far more common problem than you may think especially where invoices are still being typed by hand.
Payments are often delayed for businesses by inconsistencies or errors within the invoices. Bad payers love the opportunity to exploit this fact so ensure you have an efficient invoicing practice. frequently delayed or disrupted by minor invoice errors. Bad payers will jump on any excuse to disrupt payment, so don’t give them one.
Cearly state payment terms at outset
This is probably the most important aspect of your credit control as it sets out the parameters for payment.
If Clearly outlining your terms at outset will eradicate any confusion on your customers part and will be called upon in the event of late or non payment of invoices.
Maintain Business relationships
Your Customers are far more likely to ensure payment dates are kept with a friendly and positive Credit Control approach.
Sometimes a call a couple of days before the payment due date can assist with ensuring prompt payment expectations are met. It also gives an opportunity for your customer to alert you to any issues with the goods/services you have provided them.
Obviously, a slightly more robust approach maybe necessary if you feel a customer is avoiding payment but a Professional, courteous yet firm tone will prevent any negative escalation in the matter.a tougher approach is sometimes necessary if the customer refuses to pay or take ownership of the debt. N
Flexible payment options
The more options you have for your customers to pay you the better. Long gone are the days of just cheque, cash and bank transfer so ensure you are up to speed with the most commonly accepted methods of Business Invoice payment.
And when they still do not pay……
At Federal Management, we pride ourselves on being the most accredited and Professional Business Debt Collection Agency in the UK.
We understand the frustrations when customers do not pay and that is why our services are comprehensive, transparent and Professional.
Our Low fixed cost service recovers millions of pounds for our clients every year so speak to our friendly B2B Debt Collection Experts today and see how we can help your Business.
We wish everybody a very happy and prosperous 2019