• 1) No clear records or contact details

Get as much information as possible up front, on your Credit Application

Get to know your Customer.

• 2) No clear process on expectations for payment by your Customer

Make sure Terms and Conditions are agreed/signed before any work is carried out.

• 3) No policy or procedure on internal processes for payments by your Customer.

Make sure you have a Credit Policy that all parties are aware of so that they know the impact to the business for non-payment.

• 4) Lack of communication with your Customer. Communicating should not be just when times are tough.

• 5) Not sending invoices and statements in a timely manner

Make sure invoices are sent as soon as possible after the job/service is completed and Statements are sent within 2 days of the last day of the month.

• 6) Not enough information on your Invoice

Feed your Customer with knowledge and there is no room for delay in payment. Ensure you have the invoice number, date and due date noted. Detailed information of the order is also important and add your bank account details and/or credit card payment details if your business is set up for it. Add any retention of title messages if the business warrants it.

• 7) Not following through

Do what you say and say what you mean! Follow through on promises and be vigilant in dealing with queries. If you say you will call back in 2 days – call in 2 days. If you agree that they will call you in 24 hours – follow up if you don’t hear from them.

• 8) Not being consistent

Set a diary plan of when and how you will follow up. Your Customer will thank you for it once they know you are consistent.

• 9) The wrong person doing the wrong job

You should have a dedicated credit controller/accounts receivable person working on your most important asset.

• 10) Lack of training. Make sure you and your staff understand the collection process and how it is beneficial to the company.

If all else fails, call the experts. We are happy to help enhance your business processes.