This is a question we are often asked. Late Payment Issues are a recurring problem for most businesses in the UK, and although the government and small business commissioner are doing their best to fix the problem, it’s a never-ending battle that will always be present in a modern-day business.
There is 1 simple reason why Late Payment Issues will never go away: Cash is king, so people want to hold onto it for as long as they can get away with it.
But going back to the question Can You Really Beat Late Payment Issues Without Losing Clients? The answer is of course, yes. But its not easy. And you need to put systems in place which will cost you time, money, energy and more time!
But we are here to help! Below we have put together a 3-step plan that you can implement straight away into your business that will alleviate your Late Payment Issues within weeks:
- Be human – talk to your customers. Too many times we see clients asking us to collect a debt and they have not actually spoken to the debtor about any possible disputes on the debt. Remember the debtor is a customer first, so use good customer service to iron out any problems early on.
- Be punctual – send statement every month, and chase outstanding invoices at least every 7 days. This needs to be a well-oiled procedure when combating late payment issues, because as the old saying goes: the squeaky wheel gets the grease!
- Be efficient – don’t keep chasing forever. Make it clear to your customers that at a certain point (lets say 60 days) the account will be passed to legal or a 3rd party for collection. The longer you delay this part of the procedure, the more your debtor will realise you are a soft touch and continue to cause late payment issues.
Late Payment Issues
The main point to understand is that late payment issues will always be a problem for businesses but, just like in life, its how you tackle that problem, not necessarily the actual problem itself.
So implement some debt collection procedures in your business today and watch your cashflow grow!
If you would like to speak to one of our agents about collection of debt in your company, and learn how we help similar businesses across a range of sectors in collecting debts, please don’t hesitate to call us 0800 160 1681 or email firstname.lastname@example.org