Debt Recovery

In an economic downturn customers want to hold on to their money for as long as possible, however, where business profits are being squeezed, cash flow becomes a necessity.

Irregular cash-flow can be a big problem for small businesses who rely on regular cash-flow in order to pay their own debts, yet worry at the same time about retaining a positive relationship with the customer.

These 10 key points may assist your business in keeping the cash flow flowing:-

1. Consider whether you should be trading with this customer at all;
2. Know your customer;
3. Ensure that you are clear on price;
4. Use clear, fair and reasonable terms of business;
5. Consider interim billing;
6. Ensure invoices are delivered promptly and that they refer to your terms and conditions;
7. Ensure that the payment date is clearly stated on the invoice;
8. Ensure you have an efficient credit control system that kicks in and works like clockwork as soon as the invoice becomes overdue;
9. Ensure your terms of business contain sanctions for late payment;
10. Ensure you claim your legal right to interest and compensation for late payment of commercial debts.

Final Thought: Know Your Debtor – Bad debts can be prevented by tightening up credit control and terms and conditions.

Please leave this field empty

Whether you are an individual, a family or a business, we all have a role to play in protecting our planet and that is why we have teamed up with Ecologi. For every person who signs up to receive our newsletter we will plant a tree and together we can make a difference.

First name *

Last name *

Email Address *

By signing up you agree to our privacy policy.

Almost finished... We need to confirm your email address. To complete the subscription process, please click the link in the email we just sent you. (Please check your spam folder)