Late Payment Problem

The Ultimate Late Payment Problem Checklist

The notion of a late payment problem for businesses is as old as business itself.  From the early days, getting paid has been one of the cornerstones of successful businesses all over the world.  The late payment problem continues to cause issues for businesses of all size and stature, but often worst impacting small businesses, contractors and SMEs.

As Christmas approaches it is all the more important to get on top of late payment problem, before the long break when very few companies open for 2-3 weeks around the festive period.

Late Payment Problem

So this month we have put together a brief 5-step checklist for identifying, avoiding and dealing with a late payment problem:

  1. Invoice your customer as soon as the work is finished, that way if there are any disputes or queries, these can be resolved quicker and this won’t turn into a late payment problem
  2. Watch out for delaying tactics when asking the customer to pay, excuses such as: cheque in the post, accounts staff on holiday, signatory not in to sign the cheque, its on the next payment run etc
  3. Do a credit search on the company you are doing business with, if a Director has multiple companies set-up this could mean they are serial non-payers and should be avoided
  4. Call your customers as well as sending letters – debtors feel a sense of guilt when they receive a call & therefore are more likely to pay you, and letters can easily be ignored
  5. Follow-up with email reminders with a copy of the invoice because you have proof these were sent and can even quote the time of day – the no.1 reason for late payment  is not receiving a copy of the invoice!

Our advice is always to pre-empt the late payment problem as much as possible, chasing and escalation to 3rd party or legal process are the 2 most important things you can do to mitigate late payment problems in your business.

If late payment is an issue in your business, call us today on 0800 069 8777 to see how we can help, or email enquiries@tauruscollection.com

Late Payment Issues

Can You Really Beat Late Payment Issues Without Losing Clients?

 

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:

  1. 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.
  2. 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!
  3. 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 enquiries@tauruscollections.com

How To Collect Overdue Payments From Clients

How To Collect Overdue Payments From Clients

In order to collect overdue payments from clients efficiently, you need to have a process in your business that is well-oiled.  Whether it is your credit control team, or you as the owner doing the collecting, if you have a plan and follow it through you will increase your cashflow in your business.

We always advise clients that to collect overdue payments from clients you need to have 3 qualities: persistence, tenacity and determination.

To give you the best chance of succeeding at collecting your overdue payments, we have put together a 3-step process that will boost your cashflow instantly:

Step 1:

7 days before your invoice is due call your customer make sure they have a copy of the invoice

Step 2:

On due date (usually 30 days) call or email your customer to remind them payment is due and ask them for a payment date (if they need a reason, it’s so you can schedule this into your cashflow forecasts)

Step 3:

7 days after the due date, remind them the invoice is overdue and continued non-payment will result in Interest and Charges being added to their account

Collect Overdue Payments

If they still continue to resist payment after this stage you should contact a 3rd part debt collection agency to help collect overdue payments from clients because you never want to waste too much time on non-paying customers.

Be strict, and clear about your procedures to your customers BEFORE you do business with them and they will soon learn that you are serious about doing business, and you will soon improve your ability to collect overdue payments from clients.

If you would like to chat through any problems your business faces with overdue payments from clients, or would like to improve your cashflow with 3rd party collection agencies, please don’t hesitate to contact us on 0800 069 8777 or email enquiries@tauruscollection.com, or visit our website www.tauruscollections.com

3rd Party Collection Agencies

Why I Used 3rd Party Collection Agencies to Achieve My Goals

Think about it.  3rd party collection agencies are a no-brainer.  In your business, do you anticipate people to not pay you.  Of course you don’t.   So that means that when people don’t pay you (and they inevitably won’t), that this is taking up valuable time away from you as a business owners no.1 priority – and that is: to grow your business.

3rd party collection agencies are as important as your accountant.  Or your business coach.  Or your staff.  They ensure that none of your late payers get away with paying late, or worse still not at all.  Its like having a legal department as back-up for when the worst happens, such as a customer deciding to pay you later than 45 days, you always have someone you can trust to call on.

3rd party collection agencies

Business owners in today’s fast-paced tech world of doing things quickly, need to be on top of everything before its happened.  3rd party collection agencies take the worry away from company Directors, weighing them down chasing debts that are never likely to get paid until they are escalated.

And that is the key.  3rd party collection agencies help business owners achieve their goals by freeing up their time and efficiently carrying out work that would otherwise drain time, money and resources.

3rd party collection agencies can help:

  • Speed up payments to boost your cashflow
  • Create a pay-on-time culture, your customers know late payment is unacceptable
  • Protect your company from unnecessary losses if a company goes insolvent

If you would like to chat through any problems your business faces with late payments, or would like to improve your cashflow with 3rd party collection agencies, please don’t hesitate to contact us on 0800 160 1681 or email enquiries@tauruscollection.com, or visit our website www.tauruscollections.com

Late Payment of Invoices

How To Use Late Payment of Invoices To Win More Customers

That’s a strange title, I agree.  How to use Late Payment of invoices for good, and even to grow your business.  Well, having been in the industry more than 20 years now, with just about every scenario there is when it comes to late payment of invoices, we have learnt one thing more than anything.  Clients start to pay quicker when they learn that you have a procedure in place for chasing debts.

Its just simple psychology at the end of the day – whoever shouts loudest gets the attention; the squeaky wheel gets the grease, however you phrase it: effective, procedurised collecting of late payment of invoices is a modern-day MUST-HAVE for SMEs all over the UK.

Late Payment of Invoices

So how do we win more customers from it?

Well-oiled procedures are key to a successful business.  Reputation is everything.  If you build a collection process into your business that is fast, effective and professional, customers will respond positively.

Many customers we have collected from often say how professional we were in handling the matter and they commend the proficiency in which we have carried out the work.

Once you start to gain a reputation as a professional, no-nonsense business when it comes to late payment of invoices, the no-nonesnse tag will spread throughout your organisation and will only result in one thing, winning more, better, customers.

Try these 3 tips:

  • PREVENT: Call your customers before the invoice is due to check there are no problems with it – preventing delay 2-3 weeks down the line when it is already overdue
  • CHASE: Use letters, calls, and emails to chase the debt for up to 4 weeks once it is due
  • ESCALATE: pass to a 3rd party collector or solicitor for collection once your invoice is past 60 days due

So for Late Payment of invoices, don’t always think you are stuck with this culture, you can do something about it and you can grow your business from it.

If you would like to chat through any problems your business faces with late payments, or would like to improve your cashflow, please don’t hesitate to contact us on 0800 160 1681 or email enquiries@tauruscollections.com, or visit our website www.tauruscollections.com

The Best Debt Collection Agencies

3 Myths of The Best Debt Collection Agencies Finally Shattered

As a business-owner knowing who the best debt collection agencies are could be the difference between your business surviving, and your business going insolvent. It really is that simple.

Knowing who a trusted company who falls under the banner of “the best debt collection agencies” is critical to the efficiency, growth and development over the years for your business.

So we thought we would dispel the myths about the best debt collection agencies and the practices, in our case at least:

Myth 1 – They are services only large companies use – not the case, in fact, most of our clients are small-medium sized businesses that require one-off help in certain cases where they are having difficulty getting a response from the debtor.

Myth 2 – They are expensive – compared to the cost of your time it takes you to do the collections calls, emails, and letters yourself, then choosing one of the best debt collection agencies is not much of a comparison. Particularly on No Win No Fee, it is literally no-risk proposition as you only pay the agency when you get paid, which is a great way to do business!

Myth 3 – They harm relationships with my customers – we often receive comments from clients who say how well we have handled a very sensitive matter, and many customers are impressed by the professionalism shown so that improves the client-customer relationship going forward, as they have more respect for your robust business practices.

So you can see that the best debt collection agencies always operate professionally and in the best interests of a client’s business at all times, leaving no stone unturned to collect debts and make sure you are paid including costs & interest.

If you would like to chat through any problems your business faces with late payments, or would like to improve your cashflow, please don’t hesitate to contact us on 0800 160 1681 or email enquiries@tauruscollections.com, or visit our website www.tauruscollections.com

Credit control support

What Is Credit Control Support and How Does It Work?

Credit control support is a method used by small-medium sized businesses to assist in collection of overdue accounts.  As a result, the action improves a business’s cash flow. Credit control is a very important factor in a business’s overall success and is often regarded as the lifeblood of any company.

Offering credit to a customer involves a number of risks, but there is one risk that is the most common: non-payment.  This main risk occurs when the other customer involved refuses to pay its dues and the company is exposed to that amount having already supplied goods.

The success of credit control support lies in the efficiency of a procedure to chase the outstanding debts, and subsequently systemize a process so that the customers are clearly aware that late-payment will not be tolerated, effectively grooming the business’s customers over a period of time to pay regularly.

Credit Control Support

If a customer has failed to make a monthly payment on the due date, usually within 30 days, then a credit control support team member will send a letter to remind the customer the payment is due.  Should the debt go beyond 45 days, a further reminder letter or telephone call is made.  If a company continues to resist payment beyond 60 days the credit control support team would recommend the instruction of legal proceedings, providing no dispute or valid reason for non-payment has been raised up to this point.
Taurus Collections is a commercial debt collection business in the UK that specializes in credit control support. Taurus promises to collect your cash fast, effectively and save you the time, money and reduce dispute-time. Our company takes pride in helping businesses collect their money.

For a no-obligation chat about how credit control support could help your business improve cashflow, please don’t hesitate to contact us on 01332 565350 or email enquiries@tauruscollections.com

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