Central Business Services Anna Perry
I seem to have spent a lot of time this week talking to clients about debt recovery, so the invitation to attend The Cash Protection Agency’s seminar on Debt Recovery hints and tips was more than welcome. As accountants it’s usually the end result we hear about, when the debt has gone bad and usually been written off. The fact is, there is something you can do, or more importantly steps you can put into place at the very beginning, and on an ongoing basis to prevent debts going bad and to keep on top of your cashflow. The seminar I attended started at 7am, quite early for all my brain to be functioning but I though I’d give it a go (the offer of bacon & sausage cobs sort of swayed me)!! Denise, from The Cash Protection Agency gave a very informative presentation on what you can do to improve your cashflow. It is a reported fact the a high number of large businesses in the East Midlands have gone bust this year, having disastrous effects on smaller limited companies and sole traders. The answer, in short is knowing your customer, set out your terms at the very beginning, make sure they are SIGNED, and don’t be afraid to credit check, you cannot walk into a high street shop and demand goods on account with no credit check, don’t assume this is a given in your trade. The days of shaking hands on a deal are dying, customers and suppliers need to keep an open chain of communication, set out the terms and stick to them. If things go wrong, you need to ensure you have all the relevant signed paperwork to fall back on, pursuing a debt becomes extremely difficult when the debtor hasn’t actually been told what the terms are or how they should pay the invoice!! The Cash Protection Agency(CPA) offer a very approachable and friendly service, they will pursue debts on your behalf, starting with telephone calls and letters. They can also carry out credit searches on companies from as little is £10. They have 20 years experience in the trade and have a team of well trained telephone advisors that are firm but professional in their approach. Honestly, if cash flow and customers not paying on time are causing you head aches, give us a call, talk through your options I’m certain between ourselves and the CPA we can point you in the right direction. Anna PerryP.S. The sausage sandwiches were delicious!