One of the most important aspects of good credit control is to know who you are dealing with. We are often asked to pursue debts owing, only to discover that things are not quite as they appear.
By way of example, are debt owed by individuals or companies? Or by someone in a personal capacity or by their business?
To save time and costs, it is important to ensure the correct legal entity is pursued from the outset. It is all too easy for a debtor not to pay, if he can say the invoice has been incorrectly issued or pursued.
To help prevent these problems:
• Make sure that you ask the question when first providing goods or services – who are these being provided to?
• Do a credit check if you do not know the customer, if the value is significant.
• For large orders, ensure that written terms are signed to confirm the relationship.
• Follow up on debts promptly – a current debt is much easier to recover than an older one.
For practical, cost effective solutions in relation to recovering debts please contact Jenna Mistry of the Cash Protection Agency Limited on 0808 149 7287