by scowan
28. July 2010 18:53
12-Step Process continued
Here are the next six steps in the UK Debt Recovery Guide 2005-06’ to avoiding the build up of bad debts. As with the other blogs so far these are all steps you can take yourself without recourse to professionals like us.
7.Initiate and maintain close contact with your customers, particularly with the person responsible for paying the account. Try to create a rapport so that, even if when the money is tight, you are at the top if the list to be paid. Remember human nature still plays a part in business decisions.
8.Make regular credit checks on your existing customers. I’ve mentioned this before and it is a source of bewilderment how many companies don’t do this.
9.Ensure that all dispatch notes and invoices are accurate, and are delivered to the right customer, at the right address at the right time. Simple enough yet it is surprising how often this is the problem causing late payment.
10.Put a “stop” on supplies to customers who are not paying, and use their desire for further supplies as a spur to payment.
11.Send regular reminders and chase payment persistently by telephone/fax/email and by visits to your customers. Time consuming maybe, but worth the effort.
12.If the above fail, place the debt in the hands of a debt collection agency like ours or a solicitor who specialises in debt collection!