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
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 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
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
When choosing payment terms ‘net monthly’ – where invoices are due to be paid by the end of the following calendar month – can seem like an easy option.
However, there are several interpretations of this term, so make certain you know exactly when payment is due.… Read More
Credit control emails are a useful way to remind your customers that payment is due, without paying postage and printing costs, and with the knowledge that – all being well – they will receive their reminder almost instantly.
However, there are some things you should remember when sending out credit control emails, if you want them to have the best chance of success.… Read More
In the long list of payment terms examples, cash upon completion is probably the most familiar to many of us in our day to day lives – think of it as a more general version of cash on delivery, or ‘COD’, which is the rule applied by many tradespeople and small businesses.… Read More
Anyone who’s been in business for more than a matter of months is likely to have faced a late payment on at least one occasion, and as time goes on, it’s an obstacle you have to get used to overcoming.
Effective credit control can flag up the high-risk customers, as well as setting sensible credit limits on each customer’s account, but even so, sometimes an invoice will genuinely go astray or a client will be facing a cash flow problem of their own, and decide that you are the bill they will try not to pay.… Read More
It can seem like getting paid on time for a job well done should be a no-brainer, but sadly it’s not that easy
Here are our top 10 ways to make sure your customers pay you on time as often as possible.… Read More