If you are taking on new clients, and have a lot of money coming into your business account it is not always enough, if your customers don’t pay you then your business will struggle. There are some common issues that businesses face when collecting commercial debt and you shouldn’t feel alone, nearly every business has experienced a late payment at some point. No matter what size your business or how long you have been trading, a credit control policy can help you avoid issues associated with non-payment. An effective credit control policy should contain the following points:
Credit reporting – An important action for both new and existing commercial clients should be to perform a credit check. This can provide you with valuable information regarding your customers’ financial habits.
References – Where possible, find out who your clients have done business with before. Contact their previous creditors and find out if they paid in a timely manner. These references will give you an unbiased look at your clients.
Payment terms – If you have concerns about a commercial client, then consider lowering your credit terms to 7 or 14 days, you may want to consider requesting a deposit upfront to cover any costs if the customer doesn’t pay.
Chase quickly – Don’t let non-payment go unnoticed. Give a detailed plan of your collection procedure so that customers know they cannot get away with avoiding payment. Consider outsourcing debts to a third party if they become older than 45 days.
A good credit control policy can assist your collections procedure no end. It provides a plan for all members of your accounts team to follow and to make all customers aware of what will happen if payment is not received within terms. At Commercial Domestic Investigations we understand how important it is that your customers pay on time. We take the time to understand your business and your requirements, and can offer services to support you at any point during the collections process, from invoice collection to debt recovery, we can help. If you want to find out how we can help you, contact our team on 08444 159 200 or email email@example.com.