Part of running a successful business is making sure you get paid. If you don’t control your debtors, you run the risk of cash-flow problems and we all know that in small business cash flow is king. Preventing bad debts is an essential skill to keep the king happy.
YOU CAN NEVER MAKE IT TOO EASY TO PAY!
Statistically speaking, the longer you wait to ask for payment, the less likely you are to receive payment.
Here are some points to consider when planning your bad debt prevention practices:
- Know your target customers, and make available payment methods which suit them. Eg cash for older clients spending small amounts of money and EFT for business to business transactions.
- Any small business can accept credit card payments at minimal cost by using existing PayPal, online accounting software or bank features most likely attached to your mobile phone.
- No one likes a surprise bill. Be upfront with all charges.
- It is never to early to contact the client about payment. “I just want to confirm that you received the inv. Is there anything else I can help you with. Is it ok if I email you every now and then with some information which may benefit you.”.
Bad debt prevention services
While we are not a legal debt collection service, our persistent debtor management system will ensure far more effective cash flow management for your business. From the beginning of your sales process we help make it easy for customers to pay. Using appropriate debt collection techniques for your business, we will protect your relationships whilst ensuring prompt payment by following up outstanding amounts beyond your terms.
Our Bad Debt Prevention and Collection Services include:
- Online Courses on Bad Debt Prevention and Simple Collection Techniques,
- One on One Training in Bad Debt Prevention and Collection,
- Onsite Process Review, and
- First Contact Debt Collection
In some cases bad debts are unavoidable! We recommend various risk management techniques that range from:
- Use of credit checks,
- Using legally enforceable contacts, and
- Seperation of assets for protection against preferential payment claims.
Whilst these and other practices may or may not suit your business, a discussion and regular review is always worth considering.