Here at Commercial Domestic Investigations we appreciate that one of the largest challenges that you face as a business is credit control. A lot of SME’s don’t have the time to spend hours chasing debts but there are some quick ways of being able to keep a handle on your debts.
Review your sales ledger
This sounds like a large undertaking, especially if you have hundreds of clients, but a quick look at your ledger on a morning can alert you to clients that are approaching their payment date, or clients that have missed their payment date completely. Organise your time to check in with the customers and give them a gentle reminder that the payment is due.
Get on the phone
Keeping in touch with your clients is of the utmost importance. As long as the channels of communication are open then the unpaid invoice will be kept in the clients’ mind. Talking to your customers can increase your chances of getting paid and helps to build a healthy relationship between your client and you.
Take a look at your invoices
Make sure that your invoice is clear, concise and not open for interpretation. Take a few minutes to review your invoices, take out any confusing wording, make it clear to the client what they are paying for and their payment options. Present your details clearly so there is no confusion as to whom the invoice is from. Not sure how to improve your invoice? Read our blog on how to client proof your invoices.
Have you checked your customers credit?
Credit checking clients is becoming the norm in the business world. Although clients’ credit can fluctuate and checking the credit now, does not necessarily mean it will stay like that forever, however it can allow your business to safe guard as you will be able to negotiate payment terms based around a customers’ previous credit history. Commercial Domestic Investigations offer comprehensive credit reporting for all sizes of business.
Prioritise your aged debts
Businesses can accumulate a substantial amount of aged debt. To make sure that aged debts do not take up a lot of your time, prioritise the debts by value. The highest value debt should be attempted to be recovered first. Payment of larger invoices can increase your cashflow as well as significantly reducing the outstanding debt to the company.
Contact a debt recovery service
Debt recovery and credit control can be time consuming, this is why some companies have departments dedicated solely to it, you may find that you are unable to devote enough time and seek help from a debt recovery agency. Here at Commercial Domestic Investigations our dedicated staff work tirelessly to chase payments and we know the difference between people that can’t pay and people who are avoiding payment. With over 30 years of experience in the industry we are confident that we can assist you with your credit control needs. With the added involvement of a third party, the chances of payment from a client is increased.
Put it in writing
If all of your efforts have gone unnoticed or refused, a “Pay before action” letter can urge your clients to pay before further legal action is taken. Ensure that all other options have been exhausted before taking this step as it can damage relationships between you and your clients.
If you are in need of some advice or want to find out more about the services that Commercial Domestic Investigations can offer you. Contact us on 08444 159200 or email firstname.lastname@example.org.