At this morning’s Gone Fishing 4 Business network meeting, local businessman Roland Roberts of Cardinal Partnership shared his advice on keeping on top of cashflow and contacting clients a couple of days before payment is due.
Very good advice indeed and this made me think about the credit-control I have been doing for clients this week. Particularly one client who agreed on a reduced rate for a multi-site contract but reduced the terms of payment.
So, I thought I would share my tips with you.
Top 10 Tips for Credit Control
All businesses rely on getting paid on time to survive and thrive. Cash is King as they say, but small business owners often lack time to chase invoices and find this uncomfortable. Being one step removed we are very comfortable with the process. I find that a friendly and professional manner always gets the best results. Here are my top 10 tips to make sure you have set up a process to follow for getting timely payments.
1 Credit check all new companies
2 Set credit limits and terms
3 Set up a company procedure for Credit Control
4 Invoice on time to the correct person
5 State terms and payment options on your invoice and remember to include your Bank Details
6 Check your payments regularly so you are aware of all payments due
7 Send a Statement with all outstanding invoices listed as a reminder payment is due and the date
8 Follow up overdue payments with an email or phone call
9 Be persistent keep following up regularly and get a commitment of a date payment will be made
10 Continue to follow up until payment is received and consider using A Letter Before Action, solicitor or debt collection agency
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