Key -Steps To Take In To Avoid Bad Debtby Manish Chadha Auberge Beach Residences Fort Lauderdale
Key -Steps To Take In To Avoid Bad Debt
Despite staying at the top of your business, you might have experienced Cash flow issues. Being a part of the Debt collector company, we are mindful of debt collection London strategies. Bad Debt is one of the cases that must be avoided at a very initial stage.
To shield your business from this issue, we are here to assist you with some prevention tips.
Selecting a genuine client: To get a profitable business, people start to work with any client without knowing their background details. It’s not the right way to get your work done. An Appropriate approach should be chosen at the very initial stage to avoid any further scams.
Pick your customer with whom you can be comfortable and confident enough.
Study deeply the financial health of his/ her company and other profiles.
Now start the process by filling the Credit Application form. (including business details, valid registration number, and other references, etc)
These will help you to get a clear picture of your customer’s financial situation and also aid to take future actions.
Credit Checks and Limits:
Adjust rational and fair credit limits for your new customer and make your statement very clear to avoid any future disputes.
To extend the credit, carry your credit check for every customer. And you can also suggest them to pay for online credit checks.
Making Terms and Conditions Clear: To make the situation more understandable, make sure the customer gets familiar and agrees with the terms and conditions of the trade. To ensure it, send them a copy of the agreement with invoices. Also, remind them that there will be an interest for the late payments.
Motivate your customers and engage in a friendly environment by offering a discount if they made a payment within 30 days (it’s a standard business term or you can set this limit as you want).
Be in Regular contact: It’s very important to be in contact with your customer to prevent bad debt. Do regular checks on their regular/due payments. Try to call or deliver a message to your customer when a payment has been missed out. An advance reminder is also suggested to avoid cash flow issues.
Be strict with your Agreement: After being agreed on the terms and conditions, still, the payment is due and the customer is avoiding your calls and messages, you have the right to take strict actions against them. By canceling their credit services or putting a penalty on interest can be considered as a strict action.
Resolving Disputes: Having disputes with your customer not only degrades your profile but also harmful for your company. Try to maintain a good relationship to avert Bad debt or late payments.
Get a Personal Advisor or Lawyer: Once you have tried to be cooperative with your customer even after late payments and they are not answering the phone calls and messages. Hire a Lawyer to take legal actions against your customer, as it is unlawful to neglect the financial agreement. Another way to collect the debt is to hire a debt collector and assign him/her your customer’s profile to manage skillfully.
Taking mutual decision: There is another way to resolve the late payment issue is by discussing and concluding a mutual decision. It will not only save your legal expenses but will also prolong a good relationship. Try to consider every aspect and reach out for the reason for the late payment. Payment in installments can be an alternative to this problem.
Conclusion: After considering each and every aspect of these cases, I would suggest you go with the conditions that fulfill your company’s requirements. It is also advisable to keep the track of your customer’s deposits, payments and reconsider the payment procedure too. At last, If the customer is not serious about the agreement after being warned, you are rightful to cancel the credit agreement.
Frontline Collections - London Office Debt Collection
2nd Floor, 1-5 Clerkenwell Rd, London EC1M 5PA, UK
0333 043 4425
Created on Jul 10th 2020 00:47. Viewed 88 times.