7 TOP TIPS on How to Avoid Getting Bad Debts

7 TOP TIPS

on How to Avoid Getting Bad Debts

Andrew Athineos, Managing Director of Athena Collections, a hybrid Receivables Management and Debt Collection Agency provides some insight and top tips for avoiding debts during this period of ongoing uncertainty.

Long before restrictions were imposed in the UK in response to the coronavirus pandemic, the economic climate was suffering. Now after numerous lockdowns coupled with post-Brexit uncertainty, the true knock-on effect is still unknown in terms of what the final impact will be for the future of the UK economy.

In many ways, this appears to be the calm before the storm in an economic sense; however, any sane person could hardly call it “calm”. We are facing exceptional times and we are often asked whether it is appropriate or even inconsiderate for a business to ask for payment of their debts at this time.

TIME TO ASK In short, it’s never inappropriate or inconsiderate to ask for payment for goods or services already provided. Due consideration should of course be given and, assuming the customer keeps lines of communication open, both parties should try to work through this together.

Repaying debts in full and on time at the moment may seem like a pipe dream, but it’s imperative that companies have multiple layers of processes in place to ensure that any non or late payment is caught early to ensure open and effective dialogue can commence. Businesses should not be discouraged from asking for what is rightfully theirs. It is inevitable that thousands of businesses will face insolvency during this time and with that debts may increase, causing a domino effect. Action needs to be taken at an early stage to ensure you’re at the front of the queue.

HERE ARE OUR SEVEN TOP TIPS ON HOW TO AVOID GETTING BAD DEBTS

1ENSURE INVOICES GO OUT ON TIME Don’t leave invoices a second longer than their due date. Consider bringing in your payment terms, keeping in mind the impact this could have on your customer.

2FOLLOW UP At least seven days before the invoice is due, contact the client to ensure it has been received and there are no queries; also try to get your customer to commit to a payment date. You don’t want to miss the monthly payment run and find out that you’ll have to wait another month to be paid, putting your cashflow under pressure. Remember, it is your payment terms they agreed to when entering a contract with you!

3NEVER ASSUME FULL PAYMENT While your invoice should always be paid in full, you should never assume that it will be. Find out early (see point two) what your client’s intentions are. If they can’t pay in full, agree written payment terms. This does two things: first, it provides admission in writing, and secondly it confirms the agreement so there is no ambiguity if later down the line a default occurs.

4KEEP IN TOUCH Make sure you contact your customers regularly and keep an eye out for early warning signs that they won’t be able to pay. Then if they don’t pay as per the agreed terms, don’t be afraid to put the account on hold or switch to payment on account. It makes no commercial sense to allow the debt to grow larger when it is evident they can’t sustain the current situation. Monitor them carefully.

5ASK FOR A DEPOSIT Depending on the size of the transaction, consider asking for security in the form of a deposit upfront, a personal guarantee or lien over goods (do your due diligence to ensure the person has the means to pay if their company cannot do so).

6ACT FAST Don’t allow a debt fester because it will only get worse. Make sure you have the necessary conversation with the customer - and stand your ground. If there is a deadlock situation you should try to resolve it amicably, but remember that it must be on your terms and for the good of your business. If you can’t come to an agreement, you may want to consider taking additional action such as employing the services of a debt collection agency. Typically, a third-party approach may have the desired result because it puts some distance between you and the customer and takes the emotion out of the equation. 7 DON’T MAKE EMPTY THREATS If the relationship with your customer has broken down and is irreparable, consider what is best for your business and take action. But don’t say you’ll do something and then not do it, unless there’s good reason; otherwise you’ll lose credibility and anything you say afterwards is unlikely to have the desired effect. Rest assured - if you don’t take action someone else will.

FEEL FREE TO CONTACT US ON: E contact@athenacollections.co.uk OR CALL US FOR AN INFORMAL CHAT: N 020 3865 9319

ALTRINCHAM

By Sarah Ridgway

Altrincham, situated in the borough of Trafford is one of Greater Manchester’s most desirable postcodes.

The town boasts excellent transport links, and a 20-minute tram will take you into the city centre while the luscious Cheshire countryside is only a stone’s throw away. The historic market town which dates to 1290 has been transformed over the years with the Market House’s food hall being credited as an integral part of the town’s regeneration. Families are attracted to the large Victorian properties, green spaces and fantastic schools which has resulted in a house price boom and the area is now home to some of Greater Manchester’s most expensive streets. Altrincham has been named The Sunday Times Best Place to Live in the North West twice, proclaiming the town to be “where suburbia meets utopia”. Altrincham’s two excellent grammar schools, convenient

transport links and surrounding green open spaces such as the stunning Dunham Massey were contributing factors for winning the title. The town also has an impressive array of independent shops, eateries, and an Everyman cinema. Today it is difficult to believe that 10 years ago this thriving high street was once slated as having the worst high street in Britain due to its many discount and vacant shops.

HISTORY

Altrincham namesake derives from the old English word Aldhere’s people. The town does not get a mention in the Doomsday book but is believed to have been around since before the 13th century. A royal charter was passed in 1290 by Edward I permitting the town to hold a weekly market. This in result attracted people to live in the area and the town began to grow. Again, there is no concrete evidence the Romans settled here but there are remains of a Roman road in the Broadheath area. William the Conqueror gave the land the town now lies on to Hamon de Massey, the 1st Baron of Dunham Massey. It then passed through multiple generations of his family until the 15th century when the male line died out, Robert del Boothe took over the estate and the family remained there for 100 years.

In 1765 the Bridgewater Canal was extended to reach Altrincham and the town developed a thriving vegetable industry, with the produce transported via the canal to Manchester to sell. Warehouses soon sprung up alongside the canal in Broadheath with the new route enabling workers to commute into Manchester. By the late 18th Century cotton was the town’s main industry and the railway line to Manchester which arrived in 1849 added a further boost to the town’s population. A strong middleclass presence was soon established in the area who were able to commute easily in the city centre while living in a desirable and leafy area. Altrincham is believed to be one of the first places in the North West to be bombed during World War Two and the Broadheath factories sprang into action to assist in the war effort. Their contribution was recognised by Queen Elizabeth and King George VI in 1964 who made a personal visit to the factories to recognise and honour their efforts. The town continued to expand post-war with new housing built and the town centre was reconstructed. The 1970s brought depression and uncertainty with it and the Broadheath employment rates fell by 40 %. An outbreak of diseases such as cholera was also prevalent during this time due to deprived slums in the town with a hospital on Market Street being built to assist with the crisis. In 1900 the Altrincham Town Hall was built housing the town’s Urban District Council and has been a part of Trafford Metropolitan Borough Council since 1974. The Town Hall transformed into a facility for the community in 2005.

ICE HOCKEY

On match days Planet Ice transforms into Storm Shelter for its ice hockey team Manchester Storm whose fans gather for an action-packed game. Manchester Storm was originally founded in 1995 and the professional ice hockey team won the First Division championship that same year. The following year Manchester Storm became a founding member of the Ice Hockey Super league and during the ’90s the team drew in huge crowds. A match against the Sheffield Steelers during the 1996-97 season attracted a record-breaking crowd of 17,245 fans. The Storms won the 1998-1998 league championship and in 2001 Gary Cowan bought the club. Sadly, due to financial difficulties and Sky TV ceasing to show live games, the league was closed, and the club went into liquidation. The Manchester Phoenix formed in 2003 but by 2009 they also had financial issues and had a disagreement with the management at the Ice Dome. At the same time, the Hull Stingrays went into liquidation and the Ice Dome alongside the Elite Ice Hockey League decided to fill the gap and the Manchester Storm reformed. The team played their first match against the Nottingham Panthers after its 13-year absence. Fast forward to 2022 and just five games into the year the Ice Dome has welcomed 8,999 fans at Storm Shelter, braving the chill to cheer on their team.

The semi-professional Altrincham Aces also have their base at Altrincham Ice Dome and were founded in 1961. During their history, they have undergone a few teams name changes to include: the Trafford Metros, the Manchester Minotaurs before reclaiming the original Aces again when reforming in 2015, that year the team finished in respectable fifth place in the English National Ice Hockey League.

HEART OF THE TOWN: ALTRINCHAM MARKET HOUSE

Altrincham’s regeneration in the past 10 years has been remarkable and now the weekends are packed with people wanting to soak up the vibrant atmosphere. The Market House Foodhall has been hailed as a key factor in transforming the town into a desirable spot that is loved by locals and visitors alike. The stunning Grade 11 listed building has been lovingly restored and reimagined as a food hall housing independent food vendors including wood-fired pizzas, quality steak, craft beers and fabulous pastries and coffee. Property developer Nick Johnson spotted the potential in Altrincham and developed the canteen style dining space along with his wife Jenny. It has since received an accolade of awards; the couple has since developed two more food halls including Picturedrome in Macclesfield and Mackie Mayor in Manchester.

FROM ALTRINCHAM TO THE AUSTRIAN ALPS: ANGELA MARGARET CARTWRIGHT

Angela Cartwright was born in Altrincham in 1952 and at just three years of age won the part of Paul Newman’s daughter in the film Somebody Up There Likes Me. The actress followed this up with a role in Something of Value alongside Sidney Poitier and Rock Hudson before moving to the United States with her family. Cartwright’s older sister Veronica was also an actress and starred in Hitchcock’s The Birds, Invasion of the Body Snatchers and Alien along with numerous television credits. Once in the States the young actress worked for seven seasons as the stepdaughter of the comedian Danny Thomas in his television show, the actress remained a great friend with Thomas right up until he died in 1991

In 1965 The Sound of Music was released and among the talented cast was Angela Cartwright who had beaten some stiff competition to win the part of Brigitta von Trapp. All these years later remains a firm family favourite. Stage productions and singalong events throughout the world are still packed out and scores of fans head to Salzburg for the film’s official tour to relive its iconic moments. The Sound of Music was the highestgrossing film in 1965 and the following year it became the highestgrossing film of all time, previously held by Gone with the Wind. The film went on to win five Oscars including best picture, best director, and best actress for the glorious Julie Andrews. The film was shot in the summer of 1964 in Salzburg and Los Angeles. Its enormous legacy still lives on and the tour in Salzburg attracts 300,000 people each year. A book titled The Sound of Music Family Scrapbook was compiled by the seven Von Trapp siblings’ actors to tell their story and is full of photographs and stories from a magical summer. The seven Von Trapp Children got along famously and would go on to remain, lifelong friends. The actress also starred in the hugely popular 1960s series Lost in Space playing Penny Robinson. Cartwright even made a cameo appearance in the 1998 Lost in Space film where several other original cast members from the series made an appearance. Angela retired from acting in the 1980s and now focuses on her art and photograph, she married her husband Steve Guillion in 1976 and they have two children.

THINGS TO DO

Dunham Massey Hall & Gardens

Dunham Massey Hall sits in stunning gardens including its own deer park. With over 300 acres of historic parkland, a trip to Dunham Massey is perfect for dog walkers. There are events throughout the year including an Easter egg hunt, holiday clubs and the ever-popular Christmas at Dunham Massey. The festive period is a picture-perfect outing for families to enjoy a magical festive experience. During December, Dunham Massey’s woodland lights up, with lasers, beautiful light installations and an illuminated trail set to music to follow, children should keep their eyes peeled for Father Christmas The Stamford Quarter an array of shops and artisan foodie vendors, The project was funded by Trafford council and Bruntwood Works who bought the area in 2019 for £50m. Shoppers can people-watch at Stutter & Twitch with a coffee, head to Wild Pizza for a delicious woodfired pizza from their horsebox unit, while other familiar names include Costa Coffee and a trusty Greggs. Retailers include Flannels, H&M, JD Sports, a gym, and book shops, keep an eye out for community workshops and popup shops throughout the year. Planet Ice

The town’s original ice rink opened in 1960 and closed in March 2003 after it was sold to developers. In 2007 the Altrincham Ice Dome was its replacement and opened its doors. The Dome is the host venue for Ice hockey teams Manchester Storm and the Altrincham Aces and has 2,140 seats and 300 standing spaces. It is also a great day out for all ages with ice skating lessons, ice hockey courses, and makes an ideal spot for children’s birthday parties Stamford Park

Stamford Park is set on 16 acres and is a Grade II Park and gardens owned and managed by Trafford Borough Council. The park is bordered by Altrincham and Hale and was designed by John Shaw on land gifted by the 7th Earl of Stamford and opened to the public in 1880. There are countless facilities for the public to enjoy including a football pitch, tennis courts, lawn bowls and a grassed oval for cricket. The children can enjoy the activity-packed playground and can feed the ducks over at the pond. There are lots of open spaces to walk the dog and spots to picnic and remains the most popular park in the borough.