It is basic business sense that your cashflow is a vital factor in your businesses success. Failing to adhere to strict collections procedure is a major influence when it comes to having a poor cashflow, but what can you do to improve your cashflow and make credit collections more effective.
A main piece of paperwork involved in credit collection is an invoice, and if your invoice doesn’t include the right information, it can hinder your business. The key to creating an effective invoice is to remember that it is a notice to pay and should be clear and concise.
Include your bank details, it may seem obvious but if your bank details aren’t clearly marked in bold, in a box or highlighted in some way then a client may not see them, resulting in a delayed payment to you. A client won’t search for your details so make them obvious.
Your client may have a query about the invoice that they want to resolve before they make payment, if your contact details are unclear (or not there at all) then they will not know how to contact you, meaning that your payment will be delayed.
Be accurate when giving your service or product description. Many customer queries stem from not knowing what was supplied. Clearly detail how you arrived at the invoice total.
Detail late payment consequences, these could vary from interest being applied, late payment charges or the debt being passed to a third party. This shows your client that you have a plan if they fail to pay, giving your business the appearance of being professional and in control.
A top excuse for not paying an invoice is that the client never received it. To avoid this excuse from being used and delaying your payments, always send a copy of the invoice via email and request a read receipt. This way there is a time and date stamp on when it was sent and you can confirm that the client has opened the email.
When dealing with invoices and credit control, detail is important, without details and clarification your payments can be delayed for weeks, maybe even months. These tips can be implemented straight away so you may start to notice a marked improvement of the effectiveness of your credit control. However, if you are experiencing difficulties with your credit control then contact Commercial Domestic Investigations and see how we can help your business. Call us on 08444 159200 or email firstname.lastname@example.org.