At Commercial Domestic Investigations, we work with many clients that struggle with late payments; they are an inevitable part of business. However, we are alarmed at the amount of businesses that have previously chosen to completely write off debt. This can be hugely damaging to a company so we wanted to share some ways to avoid writing off debt.
Carrying out a credit check on potential clients can give you an insight into how they run their finances. A credit check will show any insolvencies or CCJ’s that a company has been dealt, along with any other important financial history. You should carry out a credit check on all potential new clients but to carry them out throughout your relationship, as a clients position can change.
Check your terms
If you don’t have one, then implement a detailed account opening form. Use this as your opportunity to gain as much information as you can about your client. You can use this information to get an accurate credit report as well as the necessary information for the credit control process.
Disputes can cause a huge problem with payments and usually you don’t become aware of them until after it’s too late. Consider adding a clause to your terms and conditions of sale, stating that any disputes must be raised in a certain amount of time after receiving the invoice. Make a courtesy call as soon as you have sent the invoice, this ensures that the client received it, confirm the payment amount and remind them or the clause regarding disputes.
Call a specialist
Deciding when to pass a debt to a collection expert can be a difficult decision but it is important not to let an invoice become too old. The longer the debt remains unpaid, the more difficult it will be to collect in full. By submitting an unpaid debt to a collection specialist, you are gaining a level of expertise that you credit control department may not have. By allowing an agency to recover your more difficult debt, you can change your credit control’s wider activity.
At Commercial Domestic Investigations, we work to the highest standards and industry best practice. We take the time to understand your business and will work tirelessly to recover any debt. If you want to find out how we can help your business, contact our team on 08444 159200 or email email@example.com.