Create processes to find out as much as you can about your customer (who is a potential debtor) before you start to extend credit.
If you still end up with an unpaid invoice, or worse still a court judgment, use the information gleaned at the start of the customer relationship to help you compel payment at what might be the end of the customer relationship.
It’s expensive and difficult to win customers, so even if you have to enforce payment never think that it’s the end of a customer relationship. If a customer really wants your goods or services, they will come back.
It only takes a very expensive mistake on lending money to customers to make you sit back and think – there must be a better way. Trust us – there is. Invest time in reviewing your own credit control and sales process to see how and when you extend credit.
Go back over your old cases where it costs you money, and look at how you could have done things differently. Learn from the gaps you have had, and close those gaps in the future.
We all learn from mistakes in business and this is just another area where you can improve your bottom line.
Good luck, and here at Shergroup if there is anything we can do to help you solve your problem of late payment, then please don’t hesitate to speak to one of our Business Solutions Advisors, as we have a solution for anything we have mentioned in this guide