These simple steps will boost your Business profits
Operating a Business in current economic times is more difficult than ever however there are ‘smart’ choices you can make that are total game changers in terms of profitability.
Making sure that your invoices are paid on time is a difficult task, even at the best of times. For businesses that don’t require payment upfront, chasing payment is almost a prerequisite as you are never going to have everyone pay on time, all the time. Creating, and sticking to, a procedure for every late payer is the only way forward to ensure your business stays solvent.
The credit control procedures that are created need to address a number of issues in order to be effective. With that in mind, here are some tips on what to include:
Invoice the correct person
The real reason behind a late paying company could be that you are sending the invoices to the wrong person, who may not even know they have them. Firm up contact details for all of your clients, especially for those people with authorisation to pay invoices.
Be clear with your payment terms
Making the terms of payment very visible on any invoice you send is a good way to set expectation early in the process. Also, if you are unsure about a new customer, you may want to set shorter payment terms to begin with.
Another sensible move with any new customer is carry out a credit check. If a prospective customer has a less than perfect record of making payments, this will highlight it. It’s better to find out at this stage, rather than when your invoice does not get paid. Whatever result comes back from the credit search, the information will guide you to offer the correct payment terms or whether to offer them at all.
Debt Collection Agency
When nothing works to resolve an unpaid invoice, it is pleasing to know that there is an option to fall back on. That option is to instruct a professional debt collection agency. When pleasantries fail, it is best not to get personal about the problem and this is the perfect way to show you mean business.
For a fraction of the cost of the litigation route and on a strict ‘no collection – no costs basis, the headache of chasing payment can be taken care of by a modern, professional and above all, reputable debt collection agency.
In the past, Business Debt Collection was often and surprisingly seen as a last resort. Working with a licensed and accredited company, it is now a first resort for many.
The best way to deal with business debts is to prevent them happening in the first place. With the right structure and the right accounting software, much of it can be avoided. However when one does slip through the net, your friendly, ethical professional debt collection agency offers a swift and aggravation-free conclusion to the matter.
Short cuts only lead to short measures! Speak to one of our friendly New Business team today if you are experiencing problems with non paying customers.