Business Debts & Credit Control – Improve cash flow
Late Paying Clients It’s likely most companies will experience a late-paying client at some point. The business world relies on credit agreements and payment terms, unfortunately without proper credit control or debt management, these can lead to cash flow problems. If you don’t have the money to pay staff or buy resources deliver your service […]
Late Paying Clients
It’s likely most companies will experience a late-paying client at some point. The business world relies on credit agreements and payment terms, unfortunately without proper credit control or debt management, these can lead to cash flow problems.
If you don’t have the money to pay staff or buy resources deliver your service or product or expand your business to increase profits. You’re stuck. Improving cashflow and getting debts paid should be your priority if you want to move forward and be successful.
Credit Control not working?
If you have credit control, but still receive late payments, it’s a sign that there are steps you can take to tighten up your existing processes. Perhaps the credit limits are set too high, or you have the wrong contact. Either way, improving your credit control is essential to keeping your cash flow steady and strong. If you find late payments are still an issue despite your credit control efforts, perhaps it’s time to partner with a respectful and reliable credit control agency.
When poor credit control becomes Debt Management
If your credit becomes bad debt, our number one piece of advice for getting your head above water would be to outsource your debt collection practices to professionals.
What appears to be counterproductive at first, could save your business. Professional debt collectors charge you for their services, and if you’re in debt, paying other people to do work you believe you can do internally doesn’t sound like the best approach. That’s until you realise the real cost of internal debt collection.
Late paying customers are a problem for most businesses. However, smaller and medium-sized enterprises are more affected by this. In some cases, it leads to complete closure of a company. The point is that you need to get your money from these customers as soon as possible. But, are your staff the best people to do this? They have been trained in their industry, not in debt collection. It requires a significant amount of legal knowledge, people skills, and industry-specific training that staff outside of this industry would lack. This means getting what you’re owed will take longer, and keep you in debt.
Staff too busy chasing late invoices
Furthermore, if your staff are busy chasing up late invoices, who is working on your business? If your team could focus their time on their jobs, your company would be more productive and more profitable. But, instead, they’re trying to chase overdue invoices. The losses that you receive from a lack of productivity, paying staff to work on matters that won’t improve your business and less effective debt collection will add up.
You’ll find that outsourcing to a professional agency will be faster, cheaper, and will help you maintain good relationships with your customers.
We understand that sometimes things in business happen and there might be a genuine reason as to why your customers have been unable to pay for services rendered. Sometimes, once you take the time to ascertain why they cannot pay, the solution is easily fixed. The appropriate steps can be taken. For a helping hand reconnecting with your customers and getting back on track, get in touch with us today on 0800 953 3631 or fill in the contact form below and we will be in touch