Pursuing clients with past-due bills or unpaid invoices takes a lot of time and work, hence debt collecting is a torture for every business owners.
Don’t get behind and let your cash flow suffer the consequences. Due to a large base of customers’ debt, numerous businesses have failed to build a reputation for themselves. Do you want to be a part of it?
Avoid common debt collecting mistakes by following these useful tips:
Always set up a contract for every customer/client
Setting up a contract before shaking hands and completing a transaction is common sense and will always be a wise move, regardless of how long you’ve been in the field. Whether you’re a big-time business owner or an up and coming entrepreneur with a start-up business.
A contract is a legally binding document that outlines the key elements of a business transaction, such as the total payment due, how services or products will be provided, and when the balance is due.
Small business owners are the ones who are most likely to to make this mistake. Since they’re the new kid in the block, they feel like offering a contract before hand will drive away clients. Especially the bigger ones.
Which is not the case. Even if you’re an SME owner, don’t be afraid to offer a contract once you’ve reached an agreement with the client.
Trust us, this piece of paper will help you avoid a lot of tension, headaches, and potential financial losses in the future. You can easily go after the client if they do not comply with the contract and do not keep their end of the bargain.
Run a proper background check on your client
While profiting is one of the primary aims of operating a business, getting in on every Tom, Dick, and Harry that expresses an interest in your products or services might backfire if you don’t perform enough background checks.
One of the oldest tricks in the book is to get to know your consumers, and businesses are well aware of this. They want to know with whom they’ll sign a contract. You don’t have to worry about invading their privacy or going too far; everyone’s credit record (yours included) can be accessed.
By checking their credit report, you can decide for yourself and your organisation if this is a person worth doing business with – for this document contains information about their previous and current debt, bill payments, loans, and other financial obligations.
Keep in mind that it’s always a good idea to know really well the person you’re going to share the bed with.
Keep track of the company’s receivables
Running a company is not just about the products and services you offer and how you market them. There are a lot more things that you should take into consideration such as rent, employee welfare, advertising and marketing, and staying competitive.
Another important thing to consider is your cash flow coming from your receivables. Any business’s lifeblood is their cash flow. It’s what keeps it floating and open for business.
If you’re a business owner, ask yourself this: Are you really doing things well if you don’t keep track of the money that comes in and out of your company?
If your answer is no, then it’s only paramount that you set up a process that will effectively track your company’s receivables.
But here’s another question: With all the stress of running a business, do you think you’ll be able to keep track of your receivables every day?
If you answer is still no, hiring someone or setting up a team that will handle and manage all the receivables for you is your best option. And this is where a business debt collection Melbourne company comes in.
Seeking the assistance of a specialised team or staff to keep track of your account receivables as your business grows will take heavy load off your shoulders. With that, you won’t have to worry about this tedious task and you can focus your energy in other areas of the business.
Don’t shoulder the burden alone, seek any professional help!
Don’t carry on it all and bear the brunt of the responsibility — seek professional help!
When it comes to pursuing clients who have failed to pay their debts, professional debt collectors have years of professional experience. Not only do they have the proper tools and techniques to make debt collection more efficient, they also know how to do it ethically as well! To help you focus on your other things, contact any Credit control in Brisbane to speak with a debt collector who can assess your situation and aid you in every means feasible.
