Top tips for managing debtors - Web Design Forum Graphic Design Site Templates Flash CSS Discussions

sliver12 · #1 04-17-2010, 07:59 AM

Hi

1. Know your customer and make sure they are able to pay their bills by getting a credit check on them. This might seem like looking a gift horse in the mouth but a debtor becoming insolvent owing you two to three months’ work will create a big hole in you finances for something which costs £20 or so.
2. Agree payment terms before you supply. If they intend taking 60 or 90 days to pay you should find out before starting the contract and make a positive decision to take the work or not and figure out how you will manage until the debt is paid.
3. Invoice accurately clearly and promptly. Make sure you know to whom and where to send invoices and what detail they must contain. Raise invoices as soon as the work is completed and don’t wait until the end of the month. This can result in the customer processing somebody else’s invoices in front of yours.
4. Don’t be afraid to ask for payment. Telephone shortly after you send your invoice and progress the invoice through the customer’s invoice payment system noting who you speak to and what is said in conversations. Monitor payment performance closely and complain if promises are not kept.
5. Discounts for prompt payment can be worthwhile depending on your need for the payment. The danger is payments slip and they still take the discount, meaning that it is effectively a price reduction.

Keep sharing and reading
Thanks

williamslewis · #2 05-03-2010, 04:22 PM

Thanks for sharing such helpful tips

freya · #3 06-12-2010, 12:03 PM

Hi

# Follow up on all slow payers.
# Deal direct with decision-makers at the customer. Monitor collections and follow up immediately if payment schedules are not met.
# Automatically send 30, 60, and 90 day reminder letters. Insist on your trade terms being met.
# Visit them if payments are not made on time and don’t leave the premises without their commitment.
# Don’t rely on one visit. Maintain follow up if necessary, including regular telephone reminders. Don’t finish the call without obtaining a firm commitment to make a payment. Follow up again if it is not paid on the promised date, or better still, arrange to pick up the cheque.
# Review credit ratings regularly for any changes in buying habits and increasing levels of debt. Long-standing customers can be the greatest credit risk, because no-one thinks to check on them.

Have a nice day

nancy34 · #4 08-23-2010, 12:01 PM

Hi

Check them out. Credit-check all potential customers. Risks must not be underestimated in the enthusiasm of taking on new business. Credit checks can be done quickly and are relatively inexpensive. It is important to establish the correct business title, together with its legal status (i.e., limited company, sole trader etc) before seeking reports from agencies or trade references. Awareness of your customer’s financial health can safeguard against unreliable debtors.

Clearly define credit limits. Always ascertain the expected size and regularity of orders. Use this to address the limits required. Set a specific credit limit for each customer and ensure you stick to it. Never give unlimited credit.

Terms and conditions. Terms need to be set at the beginning of a relationship with a new customer and followed up with written confirmation. Terms of sale should be clearly and boldly stated on all relevant documentation, including on order acceptance and invoices.

thanks

wendy34 · #5 09-01-2010, 10:29 AM

Hi

I think maintain constant contact with your customers. I am really very impressed with this tips. Well for batter understanding and great result I think some great tips really works. Very nice to know about this and I am surely this will surely gonna helpful in future.

Thanks

Morganaddis · #6 05-11-2012, 10:19 PM

Debt management is also relationship management. Part of relationship management is rewarding relations that are loyal. In debt management this means that clients who pay their debts on time, especially for periodical services, these may be rewarded with a special attention.

agraj · #7 05-14-2012, 10:03 AM

Thanks for spending the time to share the information and tips about managing debtors. You are really blow job, things are happen in the world elegant nice post. Nice post.

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