The Credit Cruncher - October 2009 Print E-mail
 
Ledger Guard Logo The Credit Cruncher - October 2009
"Protecting Your Business"
Late Payers - What Should You Do?
Hi
 
No matter how careful you are, late payers will sometimes be an issue, so over the next few months we are sharing some useful tips on how to manage slow payers and collect overdue accounts.
 
Don't forget, if you have any questions or suggestions for Ledger Guard's Credit Cruncher newsletter, This e-mail address is being protected from spambots. You need JavaScript enabled to view it .
 
Regards
Larry, Geraldine, Mike and Karen
 
 
7 Tips On How To Collect Unpaid Accounts (Part 1 of 3)
Manage your debtors
  1. Invest In Good Accounting Software (MYOB, Quickbooks, Cashflow Manager) so you can monitor late payers on a weekly basis. Print off a debtor report each week and take note of who owes you money, how much and for how long. Prioritise those with the largest debts.
  2. Nominate One Person To Take Overall Responsibility for managing late payers. Specific tasks can be delegated, but collections will be more successful if one person oversees the process from overdue account to full payment.
  3. Follow Up Overdue Invoices Promptly - Your late payers will not call you, so be proactive. If the account is one day late, make a call to find out what is happening. Get specifics. If payment has been sent - how was it paid and when? If not, has your invoice been overlooked or is there a problem with your product or service? Resolve any issues quickly. If there are no problems find out when you can expect payment and insist on a specific date that you can agree to.
  4. Be Well Prepared Before You Contact A Debtor - Make sure you have copies of outstanding invoices, current statement and associated paperwork including the signed contract and any variations, correspondence to and from the debtor and notes from previous calls. You need to feel relaxed and confident so you can be polite but assertive no matter what excuses or accusations are thrown at you.
  5. Get A Commitment To Pay A Specific Amount By A Specific Date and follow this up immediately with a confirmation email or letter outlining the agreement reached. Diary another call in case payment is not received when expected.
  6. Be Persistent ("The Squeaky Wheel") - Start chasing unpaid invoices the day after they are due and then on a weekly basis. If cashflow is tight, you want your account to be top priority so you are the first creditor to be paid.
  7. Record Details of All Contacts - You need to note on your debtor's file or invoice who you spoke to, what was discussed and the date and time of the call plus your initials. Then, if you or someone else needs to call again, there is a reference to what was previously said and the date and details can be quoted. Your debtor will know you are recording everything and this may encourage him to pay as promised. Additionally, these notes can be used if you proceed to dispute resolution or need to take legal action against your debtor.
 
Struggling With Debt Collection?
We can help
 
Most people hate asking for money especially if its payment for their own work.
 
But even if you can nominate someone else in your business to make the collection calls it is a very time consuming and stressful job and difficult if they are not trained and experienced.
 
If you are worried about an overdue account ask a profession debt collection agency for help, but do it sooner rather than later. Remember the longer an account is overdue the less chance it will be paid. Industry statistics show there is a 2% bad debt risk the moment you give credit. At 90 days your default risk escalates to 25%!
 
But, there is some good news.
 
Outsourcing debt collection should cost you nothing if you have a correctly worded damages clause in your terms and conditions. So don't write off a bad debt and don't accept any more excuses for non payment.
 
Contact Ledger Guard for prompt professional advice.
 
Ledger Guard's website
Ledger Guard's This e-mail address is being protected from spambots. You need JavaScript enabled to view it
Ledger Guard's Phone: 07 3262 4369
In This Issue
7 Tips On How To Collect Overdue Accounts
(Part 1 of 3)

Did You Know?
Creditor's Drastic Action

Struggling With Debt Collection?
We can help
 
Introducing Our Client -
Trimble Networks

3 arrows into an open cion purse
 
Did You Know?
Creditor's Drastic Action

If you work in the building & construction industry you may sympathise with this British builder who took drastic action last month over an unpaid account.

Although he claimed "the owners had always seemed delighted with his job" and he just wanted to "reclaim my materials for the unpaid work", this creditor's actions put him on the wrong side of the law.
 
 
"We would like to express thanks in assisting our company with an outstanding debt.
 
It was a large debt, nearly 9 months old, and it proved difficult to collect even though another debt collection agency and a solicitor became involved.
 
Ledger Guard was enlisted to recover the debt .......... and within 14 business days after receiving the debtor details we had the debt repaid in full.
 
We appreciate Ledger Guard's professionalism and communication right from the initial recovery discussions. Your response and feedback kept us informed to each step in the recovery process."
 - Patricia Di Tullio
d'Art Design 
Introducing Our Client:
Trimble Networks
 
Trimble Networks is a Brisbane based company that helps small to medium businesses leverage and maintain their IT enviroments by providing IT system design and strategic advice, infrastructure management and help desk support.
 
Their aim is to take the complexities and frustrations out of managing the IT infrastructure, at whatever level, allowing you to focus on your core business.
 
Contact them on 07 3852 4498 or This e-mail address is being protected from spambots. You need JavaScript enabled to view it or check out their website. 

 
 

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