Keeping on top of invoices and chasing outstanding payments from customers is vital in ensuring the success of every business, especially for small firms which need to keep a tight rein on cash flow.
Here, debt recovery expert Sara Beaumont shares her top tips on what businesses can do to ensure they are paid by clients.
Set your agreement terms in stone
Having good systems in place including watertight terms and conditions in writing will cement business relationships from the very beginning and prevent confusion or disputes over payment further down the line.
Clearly communicating your terms of business will ensure that customers know when they should pay-up and are clear of the consequences if they don’t.
Effectively manage your invoices
A strict invoice management system, including issuing invoices on time and following up with reminders, will ensure that late payments are kept to a minimum.
Don’t kill them with kindness
You are well within your rights to chase payments which are owed to you. Many businesses are too nice when pursuing outstanding bills for fear of straining the business relationship and jeopardising future deals.
But businesses which take this counterproductive approach are actually slowing the recovery of debt down and could be hampering their prospects of future growth.
Rather than skirting around the subject, when chasing outstanding bills businesses need to be friendly but firm to get the best possible outcome and speed up the recovery process.
Bring in the experts
Recovering debt can be an expensive and time-consuming process which ultimately takes you away from what is most important – running your business. An external debt recovery service can be of real benefit.
The extra weight provided by a legal firm can not only spur on the recovery of money but if necessary, this type of service can also help recover funds by taking disputes to court.
The WHN Debt Recovery service aims to boost the cash flow of SMEs by helping them to get paid more quickly through effective invoice management processes and effective credit control systems. Business owners can have peace of mind knowing that all their debt recovery needs are boxed-off under one fixed-fee package, with expert commercial solicitors on-hand to pick up matters if debt remains unpaid.