Protect Your Pennies - Prevention Measures for Bad Debt

Protect Your Pennies - Prevention Measures for Bad Debt

Daniel Hill Daniel Hill

Daniel Hill

Experienced Business Owner | Debt Recovery, Credit Management, Current MD/owner of Lawton Hathaway Ltd

发布日期: 2016年3月22日
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Practising good credit management can stop things from getting to the point of having to take legal action or put pressure on your clients.

Prevention Measures:

  • Credit checking all new customers
  • Imposing stricter terms and conditions on customers who have delayed payment in the past
  • Setting credit limits according to the level of risk
  • Providing a financial incentive to paying ahead of time
  • Discussing terms and conditions at the earliest opportunity and making sure your customer signs them before purchase.

If you only send these with an invoice, they will only serve as a reminder but may not be legally binding as this information is provided after the transaction has taken place. You can also use a stop list for customers you do not want to give more credit to.

Finally:Update your stop list regularly and do not supply any more goods to customers on the list until they have paid their accounts up to date. Inform late payers that they are 'on stop', encouraging them to pay up, especially when they realise they want to place further orders.

Need FREE advice? contact us today - www.lawtonhathaway.com

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