The irony is that, even in a recession, the money is still out there – it’s just that nobody wants to part with it as easily.
Here are five ways you can make sure that you receive what you are owed, in turn giving you the funds you need to make your own payments on bills and other costs.
1. Make it easy to pay
When a payment is overdue, consider accepting the money in instalments if it helps your client to settle in full, or offer a small discount for prompt payment and avoid overdue invoices completely.
2. Don’t condone non-payment
If you don’t pursue late payers, you’re condoning non-payment, whether actively or passively.
Chase for payment and, where appropriate, add fees and statutory interest to cover your own costs; under current legislation you should be able to pursue clients through the courts if required, without ending up out of pocket.
3. Cut your risky costs
Background credit checks can help to identify the appropriate credit limit for each customer; but that does not only apply to conventional ‘credit’ services.
Any time you carry out work before receiving payment, you are extending a line of credit to the customer.
Manage your exposure to risk, and stop working for non-paying clients as soon as their previous invoice is overdue, and you can protect your business’s cash flow from excessive outgoings.
4. Pay on time
A further irony of business cash flow is that paying invoices late does not actually protect you against loss.
Pay late and you risk a bad business credit rating, troubled supplier relationships and potential court action – all of which can be much worse for business than simply paying your bills on time.
5. Let us do it for you
We work with businesses of all sizes, but we know it is small businesses in particular that stand to benefit from outsourcing their credit control processes.
If you find yourself swamped with admin work, preventing you from managing your business effectively, outsource it to us and we can help to keep everything on track, relieving some of the stress from your day-to-day job.