Time and time again, clients contact our team because a non-paying client has vanished leaving the company with no way to recoup the debt. Late payments are a huge issue for UK SMEs and can cause havoc with cash-flow. Using the services of debt collection specialists, like Commercial Domestic Investigations, is the best and most secure way of ensuring that any outstanding payments are collected in a professional manner and in-line with current regulations, however, there are some simple steps that you can take to recoup late payments.
Include a credit check in your procedure when taking on new clients; it should become part of your regular process. Carrying out a credit check on clients provides enough information to be confident that the client will be able to pay an invoice (or not). A credit check can give your business some security at the very beginning of a working relationship.
Keep procedures updated
Many businesses build up a reserve of cash-flow which can help when waiting for a late payment; however, it only takes a few clients that avoid paying for a few months to use up that reserve. Create and enforce a simple credit control procedure that may include going digital. Using technology can eliminate a lot of time-consuming steps that businesses may be currently carrying out on paper. Taking a more structured approach to credit control can help to reduce the risk of late payment.
Clients, in time, will forget what service a business provided them with but they won’t forget how a business made them feel. Take the time to build a genuine relationship with clients, this opens up honest lines of communication, maintains a level of trust and may result in return custom.
Remember your rights
Clients that pay late can be subjected to additional charges of interest. A business has the right to charge interest on overdue payments. This gives your business a point of negotiation to recoup payments quickly. For example, you could choose to waive the interest if a client pays the balance in full.
If, despite all your efforts, clients still don’t pay then it may be time to focus on other accounts and pass this difficult client to a collection agency like Commercial Domestic Investigations.
At Commercial Domestic Investigations, our team are highly-trained to recoup your debt in a timely and professional manner. Trained according to industry best practice, our account managers will take the time to understand your business and your relationships to provide the best service possible. Not only do we offer invoice collection but we can assist you at any stage of your credit collection procedure, including credit reporting. To find out more about how we can help your business, contact us on 08444 159200 or email firstname.lastname@example.org.