There comes a time when most small business owners get stuck in a situation where a customer does not pay. Debt Collection for small businesses is on the increase and it is not hard to understand why. It can be often either too ‘awkward’ for Small Business owners to pursue unpaid debts. Sometimes, they simply do not have the time to take time away from more productive tasks to sort the issue out.
Chasing overdue small business payments can be an extremely costly and stressful process. Obviously, the best way to tackle the problem is to prevent it happening in the first place. There are a number of professional of measures a small business can put into place to make your policy clear to customers. It should be very clear when and how they wish to be paid for the goods or services provided.
Some expert guidance is always helpful to any small business owner when it comes to the problematic situation of debt collection. Simple strategies put in place will benefit small businesses cash flow.
Business experts recommend using some of the following tips to maximise small business cash flow.
- Confirm orders – Upon receipt of a purchase order, a business should send the customer a confirmation of the order placed. This should quote a purchase order number as a reference. In the absence of a purchase order, headed paper with a signed, written order on it is a minimum requirement.
- Make invoices very clear with details of goods supplied, exact times and dates, costs and payment terms all clearly visible. Payment terms should include a ‘due date’, so as to remove any uncertainty about how long they have to pay.
- Monthly Statements are an important tool to keep a small business’s clients informed as to upcoming payments due.
- Reminders and warnings can be sent automatically if a small business is using accounting software. Where payment is not made, the customer needs to be aware of the ramifications of not paying their bills.
In an ideal world, all small business customers will pay on time but we know that is not the case. Some will deliberately try to avoid paying but sometimes it can simply be an oversight for others.
Unfortunately, one of the many challenges facing small business owners in South Africa and around the world is that often, customers do not pay on time. When all diplomacy reaches the end of the line, Professional and lawful action needs to be taken.
Professional Expert Help
When payment deadlines are missed, it is time to seek professional help. Debt Collection Agencies are a growing solution for many small business owners. Growing fast in popularity, as an ethical, cost effective method of recovering owed monies, reputable debt collectors can get the job done with a minimum of stress and time wasted.
Frontline Collections is an expedited way of recovering overdue debts. Professional debt collectors are now the first port of call for many small businesses who want quick results without having to pay for expensive law firms to act for them.
Many Agencies operate a commission payment basis and follow a strict code of conduct. many agencies come accredited and deliver a professional service. This option ticks all the boxes for many small business owners who have no where else to turn for a solution.