Most people know that when chasing a debt, the options include debt recovery via a specialist debt collections company, or taking the debtor through the small claims court and trying to get a judgment ruled against them to force payment.
But you might not immediately know which debt collection method you should use, or which is the best first course of action to get your money back as quickly as possible.… Read More
If you have clients who owe you overdue invoices, it’s important to know the current statutory interest rate on late payments, so that you can chase for payment of the full amount you are entitled to by law.
There are three sums of money you can add on top of the original amount you invoiced for:
• A fixed sum of £40, £70 or £100 depending on the amount owed.… Read More
We talk a lot about business cash flow in general terms, and generally speaking it’s easy to think of it as the amount of money passing through your company at any given time.
That includes revenues raised from customers and clients, investors, loans and so on, set against outgoings on everything from renting premises to buying stock, paying staff and so on.… Read More
Among all the commonly used payment terms Net 47 Weekly might seem a little unusual – after all, 47 is a prime number, so it’s not like you’re giving customers a certain number of calendar weeks or working weeks to make payment.… Read More
Drawing up a credit control procedures flowchart is a great way to visualise each stage of the process, and understand better where you should place more focus, and how this will benefit your business.
Like credit control itself, you should recognise the full range of procedures used – from the first contact with a new client, to regular updates on existing client accounts.… Read More
Keeping on top of your accounts payable means more than just chasing overdue invoices, and detailed credit control reports give you a great insight into exactly where your company finances stand at any given moment.
Credit control reports go into detail – as much detail as possible – about clients, how much they owe, and when it’s due, including how overdue it is.… Read More
As a means of protecting your earnings using terms and conditions, non-refundable deposits can be a smart move if you are in an industry where a last-minute cancellation is likely to leave you out of pocket.
By asking customers to pay a deposit upfront, you ensure that you have at least part of their payment before they take delivery of whatever goods and services are involved.… Read More
As we always say, it’s important to agree any specific terms and conditions upfront – you can’t just put new payment terms on an invoice and assume that they will immediately become legally binding.
But assuming you set out your terms and conditions from the outset, then it is a perfectly good idea to include the most important of those payment terms on an invoice when you send it out to the customer.… Read More
A terms and conditions contract puts in place a clear agreement between yourself and your customer on a full range of issues.
Well-written terms and conditions should cover more than just the basics, such as payment terms and how payment can be made, but should also take care of common legal concerns like limiting liability and what happens if you cannot fulfil the order due to circumstances beyond your control.… Read More
There are plenty of credit control how-tos showing a template letter to send out to non-paying clients, but in the 21st century many businesses of all sizes use email for invoicing, whether by sending an invoice as a PDF attachment, or simply stating the details within the body text of the email.… Read More