As a business owner, the first time a customer fails to pay and you realise you need to take action, it is a scary and worrying time. But it needn’t be. Hopefully you have already put in place the right procedures and communicated these to your customer. Now all you need to do is follow through on those steps.
This is pretty simple – your customer has failed to adhere to the rules you have in place for payment of your invoice or terms of credit. This may mean they have missed one or more regular payments, they have ignored your invoice or they have called to tell you that they cannot pay.
Just follow the procedures you have in place, depending on the type of debt that now exists. Your action could take the following approach:
Keep it informal at this stage.
Make sure they know how much to pay and when.
If your customer has called to tell you they cannot pay, they should be placed on a different ‘pathway’ that may include different payment terms over a longer period of time, it’s your choice.
As soon as your customer is late with payment, you need to decide how you will deal with the customer in the future. A late payment may simply mean no credit terms or payment upon completeion of service.
Failure to pay could, quite justifiably, mean that you insist on payment before any additional service is offered. Or perhaps you will decide never to deal with the customer again. This is very much situation dependent, however, with the right approach, taking action on money owed early can lead to improved cash flow and repeat business. Whatever you do, if you follow the steps we’ve outlined throughout this series at least you know you have done the right thing at every stage – because you were prepared.
Should you want to find out more about correct procedures or, to find out more on how we can help, please feel free to contact us.
Director at Debt Solve UK Ltd T/A as DSL.
Since the launch of VM G at Congress 2018 there has been a real buzz and excitement around how the regional structure will look! A new initiative, the Regional Roadshows, has been introduced and engagement is at an all-time high. The concept is that three topical lectures will be delivered across our regions, throughout 2018. Our first […]
Why lock horns with customers due to late payment?[GSI] Get Someone In – Bring in professionals to take the strain and separate yourself from those difficult conversations. That way you can keep your customers focused on the great service and products you provide. A good quality commercial credit control / collection agency will bring experience, […]
Reading Time: 70 seconds Most people who are owed money whether it’s personal or business have said, “If they don’t pay I’ll take them Court.”. Whilst good quality collection agencies are often faster and cheaper than going through the court system sometimes help from Her Majesty’s Court Service is required to force debtors to pay. Here […]
A career with us means being part of a standout business with a clear vision and strong values. We’ll give you everything you need to do a great job, and your contributions will be properly recognised, highly valued and well rewarded.Latest vacancies