Don’t be the next Carillion
Posted 7 months ago by aequitaslegal in Debt Recovery
Whilst we all hope for prosperity in a New Year, 2018 appears to have presented a continuous stream of business in hardship, especially in the North West.
At this time, it makes all business owners/ managers to give thought to their sustainability and ensure there is adequate cashflow in the business.
One way to assist with cashflow, is to keep a tight control of your credit control process and any outstanding debts.
To this avail, we have our top 5 tips for managing your debts
- The first top tip is a pre-emptive step. When you`re engaging with a new customer ensure you have done your due diligence. A credit check should be a standard part of your process, providing you with data to ensure any new customers have the funds in order to pay their invoices. Some credit reports will go even further, providing you with data about how quick they are to pay their invoices.
- Ensure the terms and conditions regarding payment are clear and concise, as well as clearly communicated to the supplier/customer from the onset.
- Invoice promptly and accurately. Be clear on to whom the invoices are addressed to and the detail within them. Issue the invoices as soon as the goods/services are complete.
- Clear and efficient credit control processes are essential. Ensure you have processes within your business which promptly chases any overdue payment.
- Don’t be scared to pick up the phone when payment becomes overdue. Remember, you already have an established relationship, so picking up the phone should never be an issue. You are likely to find more information is forthcoming over the phone rather than a written correspondence.
If you are experiencing any cashflow issues or have any questions about the above, don’t hesitate to drop Aequitas Legal a call on 0161 358 0800