It’s common knowledge in the credit control industry that the longer an invoice remains unpaid, the more difficult it will be to collect. At Commercial Domestic Investigations we have shared our tips and advice about how to avoid late payments and what you can do to encourage customers to make a payment. Some problems are easy to look out for, such as a cheque that bounces or a customer informing you that they will have trouble making a payment this month but are there anymore signs that you can look out for to get ahead of payment problems?
If the company that you’re working with is moving to a new location this could indicate that they are having financial problems. If they’re moving to smaller premises it suggests the company is downsizing whereas if the company is moving to a larger location then that indicates their business is growing, which is good news for them but one way of financing growth is to delay payments to vendors, which is bad news for you.
If a company is losing staff it may be a sign of financial crisis. If an employee has been working for your customer for years and then suddenly leaves, it may be that they have moved on but financial problems are usually the cause. The employee sensed the problems and abandoned a sinking ship.
The biggest indication that a company is facing financial difficulty is if they are selling up. The process of selling a business is typically very complex and time-consuming, meaning that the business only suffers further. Once a company has been sold it makes it near-on impossible to collect on overdue invoices. Similarly, if you find that a business is applying for loans, funding or looking for an investor this can be a last ditch attempt to salvage their business.
If you believe that a company is in crisis then be aware of any explanations or excuses for not paying. Try to talk to several people at the company to ensure that their story is true; where possible it may be worth paying a visit to the client to speak with someone in person to come to a solution. If you find that an agreeable solution cannot be reached then it may urge you to take more aggressive action, an effective debt recovery policy can help to plan your debt collection but using the services of a collection agency means that the process can be dealt with professionally and in-line with current rules and regulations.
At Commercial Domestic Investigations we take the time to understand your business and offer a range of services to help recover your overdue accounts. Our team of agents are highly-trained to industry best practice and will work tirelessly to recover any monies owed to your business. If you want to find out how we can help you, contact our team on 08444 159200 or email firstname.lastname@example.org.