How to collect debt
Collecting monies owed from late paying customers or clients can be time consuming and a drain on resources, especially if you are responsible for running your business day-to-day too. Outstanding invoices can also be dangerous particularly for small businesses; disrupting cash flow, which can lead to financial difficulty.
The best way to collect debt is to ensure that you already have an effective and proactive credit control procedure in place, know you customer and have clear terms and conditions.
Proactive credit control procedure
Having effective and automated credit control procedures in place will mean your customers and clients know they cannot get away with paying late or using your company as a cheap or even free source of finance.
Some of our clients use Forbes Collect as an extension of their credit control. This can help to maintain positive business relationships, while depersonalising the debt collecting process and it also encourages earlier payments, which will help to keep your cash flow healthy.
Know your customer
Knowing your customer is the mantra of every business but it should not just apply to your marketing and sales teams; it is also important for your finance department to understand them and it can be crucial to maximising your return. Important factors to consider are:
- The legal entity of your customer. For example are they a limited company or a sole trader
- Complete a credit application and conduct a risk assessment on the potential customer before they come on board
- It is always worth getting personal guarantees for directors
- Keep up to date records
Clear terms and conditions
Having clear terms and conditions, which are explained to the customer or client from the outset, is essential for maximising your chances of being paid on time. Ensure that your terms and conditions include the following:
- Payment terms
- Late payment terms
- Timescales for payments
Make sure the terms are signed and agreed to as part of a contact before your dealings commence.
Contact Forbes Collect today on 0800 689 4176 or email us on forbescollect@forbessolicitors.co.uk
01 Nov 2018
Forbes Collect
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We have found Forbes to be efficient, informative and effective in all our debt collection cases
KM Accountants have worked with Forbes for just over 12 Months. During this time we have gained a great working relationship and I feel Forbes understand our business needs
KM Accountants
On behalf of everyone here at EvolveU we just wanted to say a massive thanks for all of your help and assistance with the Traffic Engineering and Management Services Limited
EvolveU
We are delighted with the Professional manner in which Forbes Solicitors deal with all our legal requirements and would not hesitate to recommend this Company.
Trident Fire & Security Group Ltd
We asked Forbes Solicitors to help when a client would not pay his bill. I sent an email to Katy, received a reply straight away, we were advised of the action that would be taken
Abby Welding Ltd
I contacted Alison at Forbes Solicitors regarding an outstanding debt which we were having problems getting paid for I would just like to say what a very quick and professional service she provided
Natalie Fairclough
Thermal Hire Ltd
The Woodscape Group have been relying on Forbes Solicitors for over thirty years and the work carried out by Alison Nelson and the team over the last few years has only strengthened
Richard Nelson
Managing Director
Woodscape Ltd
DPFOC relies on Forbes for all legal advice. We find the service to be professional, well-informed and affordable.
Eddie O' Driscoll
DPFOC
I was owed money for plumbing services provided and despite several conversations with the debtor to request payment, he was dishonestly claiming that he had paid despite their being no evidence
Martyn Whalley
Back on Tap Plumbing
Alison and her team have worked with us on a number of occasions now - so much so that we see them as an extension of our business!
Lucy Hyde
Managing Director
Higher Access Limited
Forbes have helped me immensely with bad debt recovery over the past few years.
Olwen Hope
Credit Control
Able 2 Ltd
I have used Alison Nelson for a number of years for debt collection. I would strongly recommend her for similar work.
Mr Fahmi
Consultant Plastic Surgeon
The professional and speedy way that Forbes dealt with this resulted in a very quick settlement of the matter. I can assure you that I will recommend Forbes for matters such as this in the future.
Morgan Rothwell
Director
D&M Creative Limited
We have used Alison's services on a number of occasions and have always received the desired results!
Stephen Gibson
Operations Director
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