Submit a review &
| Getting the money in |
| by Tony Harrison of www.thesuccessfulsolo.com There is little in business that sends the blood pressure rocketing than discovering that your wonderful new client has called in the receivers and gone bust. Thankfully this hasn't happend to me recently, but we all at some time have experienced the client who pays late. So how can we protect ourselves? 1. Have very clear payment terms expressed on all contracts. 2. Be clear who you are contracting with (individual or company); consider a credit check using a reputable agency. 3. Invoice promptly and accurately. Give no excuse for delaying payment. 4. Send a statement of account within 10 days. Many companies only pay against statements. 5. Provide your bank details on the invoice and statement. 6. Establish who is responsible for paying the bill and build a relationship with them. 7. Call to check there are no queries and ask for a date when they will pay. 8. Remain polite but firm. Remind them that (in the UK at least) you have an automatic legal right to charge interest. In the UK this is set at Bank of England Base Rate plus 8%! 9. If they fail to do as they say they will, write advising that you will take legal action. 10. Follow through on the legal action. Consider using a Baliff to remove goods to cover the value of your debt. The cost of a non paying client has been known to sink a business. If you sell goods where your profit margin is 10% and the customer does not pay, you will need 10 times that value in new business just to recover your loss. Tony Harrison specialises in coaching those who'd like to have a more profitable business with less struggle. You may contact him at tony@thesuccessfulsolo.com or telephone 08456 44 88 41. |
| Posted: 05/05/2005 22:36:28 Last Updated: 05/05/2005 22:39:50 |
Chick Lit > Business Chicks :: Getting the money in