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5 Great Reasons To Join IWIB TODAY
01 April 2011 BYAre you an Irish Woman In Business? IWIB is a new network dedicated to helping Irish women succeed through networking and mutual support. There are many benefits to membership. Read full story
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Making the transition from employee to boss has been made so much easier by the help and support of the…When The Going Gets Tough
09 January 2010
In this tough economy many business owners are finding that customers who have always paid on time are struggling to stay current. Other customers who are already slow payers are falling behind or can’t pay at all. Alarm bells should start going off if contacts become unavailable, credit transfers are delayed and there are unaccepted cheques. Excuses are, of course, another thing to watch, as well as people offering you partial payment. You may have a long and established relationship with your customer and their situation may be temporary, but how do you prevent their short-term problem becoming your longterm one? Pick up the phone and call them, meet with them and discuss a resolution – only then can you assess your options. People pay more quickly if they know and like you. Check the most current financials on them (you can obtain trade reports though credit agencies, check for judgments against them; and, if possible, find out to whom else they owe money. This way you can make an informed decision before taking action.TYPES OF ACTION
- Put the account on hold, consider cash on delivery until it’s cleared
- Invoice immediately after the product or service has been delivered
- Send seven-day demand letter and issue a current statement
- Use internal relationship (your sales department) to contact customer
- Send final-demand letter and state action to be taken.
- Follow through on what it is you say.
INTERNAL PROCEDURES
Now is definitely the time to prevent future bad debts. Tighten your credit procedures. You can’t guard against unforeseen events, but you can minimise your company’s chance of loss by maintaining rigid adherence to your collection policies.
- Try to discourage extended payment terms
- Pursue partial payments with requests for the balance due
- Shorten your credit terms, for example, from 60 to 45 days
- Offer an early-payment discount incentive, ie a percentage discount if payment is made within 10 days
- Call your customer before the due date of payment – confirm invoices are passed for payment, and there is no problem meeting the due date.
To read the full article become a member and download. Article courtesy of Owner Manager Magazine. Return to News list
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Irish Women in Business is a professional body, representing all women working in business. The aim of IWIB is to unite women and allow them to share resources, information and ideas. IWIB provides a safe environment for members to receive advice on finance, the economy, the internet and marketing.
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