Debt Recovery - Make it hard to be owed money

Posted by Luke Mitchell on 15 May 2019
Debt Recovery  - Make it hard to be owed money

Slow paying (or even worse, non-paying) customers can cause a business significant cash flow problems and lead to the loss of a substantial amount of time in chasing payment of outstanding accounts.

Here are some tips on preventing bad debts through effective client engagement documents:

 

  • Know your Customer

    • Who are they?

    • What do they do?

    • Can a trusted source vouch for them?

    • Undertake a credit check with a Credit Rating Agency

    • A difficult customer in the beginning could become a bigger problem moving forward

  • Gather full details on your client:

    • ABN / ACN

    • Legal Entity Name

    • Registered, trading and postal addresses

    • Contact details

    • Directors and/or authorised officer's names and contact details

    • Who is signing on behalf of the business – take their details too

  • Get paid in a timely manner:

    • Your engagement documents should set out your terms of trade

    • Make sure the document is signed by a person authorised by your client to sign andact on their behalf

    • Offer a variety of payment methods – don't make paying hard

    • Invoice your customers regularly

    • Follow up in a timely manner

    • Don't deviate from your common practice – stick to procedures

Make it hard for your customers to owe you money.  Our team can help you formulate business specific Terms & Conditions that will give you every advantage to be paid. 

Turning debt into payments - It's not personal.  It's business.

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