debt recovery

is rightfully yours. However, getting this right means putting the right processes in place.

Consider payment methods

Keep all your records, including proof of delivery, copies of invoices sent, and, crucially, a record of all payments received and actions taken where this has not occurred.

What if your reserves are running low?

Regardless of how many orders you have, or what your profit margins look like, without adequate cash flow your business will be in trouble. Cash flow requires a strategy. You must plan your requirements diligently, including cash forecasts that you regularly update.

Can you protect your credit?

You can trade with protection against bad debt by taking credit insurance. By reducing the risk of bad debt, credit insurance can strengthen your balance sheet and may make other forms of financing more easily available to you, including overdrafts or invoice factoring.

Are you out of options?

Sometimes, despite every action Paul Daine and process you take, you cannot Premium Collections get paid. You can take further action, www.premiumcollections.co.uk

The importance Cash flow is the lifeblood of Businesses. It enables them to invest and expand. Without it they cannot of cash flow be sustainable. order, or agreeing any work. but you must be sure you want to To make the most of opportunities, commit to it. For example, if your a business needs confidence in their cash flow. This means getting to grips with credit management. Are you invoicing effectively? It might sound obvious that if you do not raise an invoice then you will customer who has failed to pay you is insolvent, will this gain anything? Also, you must consider the costs How well do you know your not get paid, but turning this into an involved in taking any action set customer? efficient process will help keep you against the money you are owed. You must know who you are dealing up to date with what people should be paying you. In other words, is it worth it? with. You need to know the person you are trading with is credit-worthy. The main thing to note is that Professional debt recovery Should things go wrong, the more you know about them, the more effectively you can take legal action, should it become necessary. invoicing must be a priority. It is the first step in helping you achieve, and maintain, the cash flow that will allow your business to run and grow. Another option is to commission a specialist commercial debt recovery agency to act on your behalf. We will have the expertise Gaining as much knowledge in Getting it right from the start and resources to provide the advance of doing business is a sensible way of protecting yourself. If you get your invoicing right at the start of the process, it reduces the necessary extension of your credit management process. Specialised What are your payment terms? chances of you having to spend time debt recovery works because it Payment terms are essential, because if something goes wrong and energy issuing credit notes or follow-up invoices. provides a dedicated service that is focused on achieving results. and someone fails to pay you on Include your terms and conditions Consider commercial debt recovery time for your product or service, with the invoice, with special as a logical, effective extension of then without agreed terms, how do reference to interest chargeable your credit management policy. you prove late payment? for late payment. If you are VAT registered, your invoices must No surprises be compliant with HMRC VAT Sound credit management is not requirements. about firefighting, but putting Can you chase payments? measures in place to reduce the likelihood of problems occurring Completing the sale is when the when it comes to payment. customer pays you. If they fail to Set out and agree your payment terms in advance. Do this in writing. pay you then they are hanging onto money that should belong to you. It’s strongly advised to confirm these It is therefore important to follow up agreed terms before placing an non-payment and to ask for what