Top 5 Debt Recovery Tips

It's all very well having sales but when are they going to pay? Sometimes prevention is better than a cure , our list below is a mixture of both. But the old adage here of "if you measure it , it will get done" is very relevant here you must take consistent and constant action or your bank manager will be on the phone.

1. Do you know who your customer is?
Conduct a search at Companies House in the case of limited companies;
Credit check your customer with credit reference agencies, and/or obtain trade or bank references before contracting with them.

2. Get it in writing
Have a purchase confirmation system which documents the transaction in writing and is signed by the customer;
Keep detailed records of all aspects of the transaction, including notes of telephone conversations;
Have professionally produced Terms and Conditions so that everyone can refer back to something should there be any doubt.

3. Operate a complaints procedure
Deal with complaints promptly;
Be objective when considering and investigating a complaint;
Be prepared for a discount - as you know your goodwill is extremely valuable.

4. Have a robust credit control policy - and stick to it
Set credit limits;
Review sales and debtor figures, in these times we would say once a week.
Have a set procedure for chasing late payments, e.g. first letter, first telephone call, second letter, second telephone call, final letter and then legal action;

5. Notice the Warning Signs
Excuses such as "cheque in the post", "missed cheque run" etc.
"Can you please make the invoice out to" another company;
Multiple companies with similar names;
Directors have been involved in other failed companies;

If all else fails and you feel the next step is legal action then there are some relatively cheap ways of recovering debts these days , if you need help in this area just let us know and we will recommend someone suitable to help you.