If you are a business owner then we don’t need to warn you about the impact of late payments, the warnings and cautionary tales are all over the news. Late payments can cause a huge amount of damage to your business.
While changes are being made to regulations to try and reduce the damage that late payments cause, the responsibility is still on you, as a business, to protect yourself and minimise the impact of late payments.
It is best not to rely on one customer for the main source of your income. Try and spread your customer base and take care of every customer, no matter how much money they are spending with you. If your largest customer didn’t make a payment, would your business be able to pay its bills? If not, it is the time that you try to build relationships with new clients and reduce the impact that a late payment has on your business.
Your business should be using a clear credit control procedure (if you’re not then this is how to create one). You should regularly review your procedure to ensure that you are still effective when it comes to collecting a debt. If customers are constantly paying late, you need to review your procedure and make sure that you are doing everything you can before the invoice is due, to encourage the customer to pay on time.
If you struggle with late payments, then you may consider outsourcing some or all of your credit control. A collection agency has the expertise to handle your debt professionally, using the services of a third party can mean that you get paid quicker and improve your cash flow. Simply the act of using a third party is enough to persuade a client to make a payment. If not, then an agency is trained to deal with debt in line with the latest regulations and industry best practice so you can focus on other, more important tasks with the peace of mind that your credit control is taken care of.
If you want to find out how a collection agency can help you improve your cash flow, contact our team on 08444 159200, use our contact form or email email@example.com.