- January 8, 2019
- Posted by: Taurus Collections
- Category: Blog
We get asked this question all the time, as you might have guessed. I need help with a late paying customer are the words most people will use at some point in their business. But it doesn’t have to be a painful experience! The best solution is often found by just adopting very simple business principles, that they don’t really teach in business school!
So let the lesson begin, we will try and make the words “I need help with a late paying customer” be a thing of the past. Here are just a few tips to implement in your business:
- Invoicing – get this right and you are half way there. Make sure you include bank details, payment terms and make sure it is invoiced to the correct entity! We have seen this a lot lately, particularly when a business is so excited to get the new business! They spend no time finding out who the correct business entity is and then 2-3 months down the line they wonder why. They end up finding-out the delays in payment are due to being billed incorrectly! Easily fixed!
- Chasing procedures – you need to be disciplined and robust in your approach. Have a systematic procedure of chasing, at a minimum, of every 7 days on overdue balances. And don’t just chase endlessly. If you are not getting a response, always look to outsource to legal or a 3rd party debt collector. Don’t forget to get them to add all costs to get you back to no-cost.
- Relationship – this is important, and one that many people forget. The better you have a relationship with your customers, the easier it will be to resolve a late payment issue. An open channel of communication allows you to contact the person you sold to directly, and often these can resolve the issue quicker. Simply contacting an Accounts Dept often won’t work. The Accounts Dept. will try and put you off getting paid as their focus is protecting their company cashflow.
I Need Help With A Late Paying Customer
So let the words I need help with a late paying customer be forgotten. As we head into 2019, start implementing some startegies for collections to keep on top of your cashflow.
If you are struggling to collect business debt in the New Year in 2019, please don’t hesitate to give us a call on 01332 565 350. Or email email@example.com for a no obligation assessment of how we can help your business.