From speaking to our customers, we weren’t surprised when we read the research from Satago that said that 1/3 of UK SMEs write off thousands of pounds of bad debt every year. After all, we know first hand the problems that our customers have when they first seek help and advice from Octempo. Here are some simple ways for business to avoid the pitfalls of inadequate credit control.
(1) Vet your potential customers:
Ormsby Street revealed last month (May 2015) that UK small businesses who regularly credit check their customers are around 30% less likely to go out of business in their first 12 months than businesses which don’t credit check. Using a credit checking service allows you to see whether your customer is likely to be a good payer or not, thus avoiding the issue of late invoice payments later down the line. For more information on one off credit checks, without subscription, available for your customers UK and abroad, request a call back.
(2) Prevention is better than cure:
Keeping on top of your credit control is vital for the cash flow of your business, yet many businesses take their eye off the ball at this crucial part of the sale. Often in SMEs, the burden of credit control falls to the already over-burdened owner or director. If this sounds familiar to you, then you may want to add someone to the headcount, or outsource this to a specialist who will take control of your credit control and forge strong relationships with your customers on your behalf, under your brand name.
(3) Don’t be afraid to take recovery action:
Sometimes, for a variety of reasons, your invoices may remain unpaid and become a problem to the business. In situations like this, when the two parties are at stalemate, it may be worth involving a 3rd party to collect the debt on your behalf. Importantly, if your debt is overseas, you would benefit from using an International Debt Recovery specialist to ensure they speak the same language and communicate more effectively.
At Octempo, our aim is to make sure our customers never have to worry about bad debt again, so if you want further information on Credit Checks, Credit Control or UK and International Debt Recovery, request a call back or contact us today.