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 there business. But it doesn’t have to be a painful experience, and 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 with 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, when a business is so excitied 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 find 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 and 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 than simply contacting an Accounts Dept who 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 and 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 for a no obligation assessment of how we can help your business.
Wishing everyone in business a very happy holidays, and we hope you all have a fantastic New Year in 2019!
The Taurus Collections Team
How To Collect Debts For Small Business
If you are wondering how to collect debts for small business, try this simple 3-step procedure to help you collect debts quickly in your business.
Apply these quick techniques to see your company cashflow improve within weeks!
This 1 minute guide takes you through exactly how to collect debts for small business using the telephone, which is a necessary part of being in business!
You could say its the How To Collect Debts For Small Business Ultimate Guide!
The Untold Secret To Mastering Debt Collection In Your Business In Just 60 Seconds – watch our brand new video!
A simple 3-step formula to help you collect debts quickly in your business.
Each year around this time at Christmas, many people are looking to collect business debt before the big shutdown at Christmas. 2018 is no different! And with Brexit around the corner, many businesses are worried about an uncertain future.
Most of our clients ask us the same questions about how they can collect business debt quickly and what procedures they can put in place to prevent late payments in future. What is the most cost effective solution to collect business debt? Our answers are always the same. You need a plan! Whether small, medium or large sized, every business must have set procedures in place when collecting money from their customers.
Collect Business Debt
So we have assembled 3 key points on how you can collect business debt quickly which will bring fast results in your business:
- Be Pro-active – Plan your debt collection steps on the day you invoice your client. Diarise calls after 7 days – to make sure your customer has received a copy of the invoice okay. Call on 14-21 days – to make sure your customer has no disputes. Call on 28 days – to request a payment date for the coming month. These are all pro-active steps which you can take BEFORE your invoices become overdue, ensuring no excuses can be used for payment much beyond your 30 day terms.
- Be flexible – remember collecting debts can be difficult when there is no money to collect. In other words, work with your customer to ensure payment over a period of time if they cannot pay in full. Or, take a 50% on-account payment as good-will, and review their account in 7 days. FACT: Many debtors do not pay because they believe they have to pay in full in one go!
- Be confident – if you don’t ask you don’t get. Ask confidently for payment in 30 days’ time in your email to your customer when you send the invoice. Ask confidently when you call your customer to chase payment that you want to be paid in 7 days’ time. State confidently that non-payment of the account will result in the matter being handed over to a 3rd party collection agency and Interest and Late Payment Compensation will be added to the balance. You have done the work; do not be afraid to ask for what you are owed!
To collect business debt with speed and efficiency this Xmas you first have to put in place the correct plan and procedures to protect your business and be confident in your demands for payment!
If you are struggling to collect business debt this Xmas, please don’t hesitate to give us a call on 01332 565 350 or email firstname.lastname@example.org for a no obligation assessment of how we can help your business.
Many of our clients who first approach us are desperate for help when they are looking for debt collection in other countries. When you first decide to export your products or services, you do not predict that there will be payment problems, delays or disputes along the way – you are just excited to be trading as a global player.
As all businesses know, you need to plan for risk events, and that is why it is important to have a procedure in place for debt collection in other countries.
So we have put together a few pointers to help you consider the process of escalation involved if you are struggling with debt collection in other countries:
- Chase in-house – utilise all your expertise in-house to resolve the situation before anything else. Your sales team, your credit control, head of finance, even your MD should get involved because you want to have tried every avenue for collection, before considering escalation.
- 3rd Party outsource – once you understand that the debt cannot be collected in-house, or you simply do not have the resources, you should immediately search for a 3rd party debt collection agency, preferably in-country or one with a network of global partners, to recover the debt on your behalf. Debt collection in other countries is best left to the experts in the industry, and on the ground.
- Legal action – this is the absolute last resort, and will likely be very expensive, but you should always keep this option open because in many countries legal costs are at least in-part recoverable and it may not be as expensive as you think to attain a court order in your favour. But you must bear on mind, if they still don’t pay thereafter how do you enforce it and the costs involved thereafter.
Debt collection in other countries
So there you have it, a small guide on debt collection in other countries and how you should procedurise and escalate accordingly.
Its crucial that if you are exporting overseas you make contact with a debt collection agency with partners around the world to help, when needs be, with the collection of any outstanding monies.
It is our passion that you are paid on-time by foreign debtors and our clients are very happy with our services. If you are struggling to collect debt in another country and want to speak to us for a chat to see if we can help you out, please don’t hesitate to call us on 01332 565 350 or email email@example.com
Working with clients who require overseas debt collection, we have managed to develop a successful strategy for dealing with late payers who are based in a foreign country.
Overseas debt collection is by no means easy, but you can utilise this 5 step-plan for helping you and your business collect any debts outside of the UK jurisdiction:
- Exhaust all means in-house: if you are collecting debts overseas, you need to be sure you have pushed the debtor as far as possible in-house before looking at other options. Chase by phone, email, and even letter (yes, you can send letters overseas!)
- Add all costs & interest: just because they are based overseas doesn’t mean the debtor can’t abide by your Terms, or terms set in the UK, and so you should add late Payment Compensation and Interest on top of the debt.
- Be firm, then follow-through: don’t just threaten debtor when looking at overseas debt collection, you need to have a credible threat so that means when you say you are going to pass the matter to a lawyer, or 3rd party debt collection agency, you must do that otherwise they will think you don’t stick to your word and that you are a push-over and will never pay you.
- Engage the experts: the world of overseas debt collection is a complicated field, with different laws and local business rules for each country and region, so its best to hand the dealings over to an expert agency specialising in-country collections, or a lawyer in that country.
- Work on No Win No Fee: never pay a company when outsourcing in relation to overseas debt collection. The professional agencies will always handle the matter on a success-only basis so you can pass the matter risk-free and without expense. Costs can always be added on top.
Overseas debt collection
So, now you have a 5-step plan if you are ever faced with the need for overseas debt collection in your company.
The no.1 rule is to act fast, because the longer a debt is uncollected the more difficult it is to collect
It is our passion that you are paid and our clients are very happy with our services. If you are struggling to collect debt in a foreign country and want to speak to us for a chat to see if we can help you out, please don’t hesitate to call us on 01332 565 350 or email firstname.lastname@example.org
In your business, all you want is success. You want to keep growing, and receive services that are of a high standard, just as you would provide to your customers. So when it comes to debt collection, you might want to compare some of the biggest debt collection agencies and see how they rate.
But they are not all the same. In fact the biggest debt collection agencies aren’t always the best ones to use for your business. We always find that a tailored service with a passion and knowledge about your industry is the best way to achieve results for you and your business.
Here’s some pointers about the biggest debt collection agencies:
- Size – does it matter? The biggest debt collection agencies deal with customers on a corporate level and will prioritise debt by size. Think about this as an SME as you may want to be handled with care and attention like a real person, as oppose to another number.
- Passion – many smaller agencies are passionate about their work, as they form a real long-term relationship with the customer. The biggest debt collection agencies are often manned by hourly-paid workers with little passion for work and often change jobs very quickly so there is no continuity of service
- Personalisation – a debt that is owed to you is a very personal thing. No-one likes it, and it feels like an insult. The biggest debt collection agencies may not understand this and can treat you without the personal connection.
- Fees – some of the biggest debt collection agencies can lure you in with very low no win no fee arrangements, only to realise that their real aim is to bring the matter to court so that more fees can be gained, without actually much attention to collecting the debt. Often they will send 1 letter, and request it goes to court. This will rarely get you a successful result!
So there you have it, a few points to consider if you are looking at the biggest debt collection agencies.
If you need help collecting debts, we are a small family-run business with a big passion for helping our clients and always collecting their debt with the clients best will at heart. Call us on 01332 565 350 or email email@example.com for more information.