The Octempo:RM Blog

Good credit control - How to prevent bad debt and get invoices paid on time - Volume 4 - Late invoice payment

Tuesday, 14 January 2014 21:16 by The Late Payment Assassin

 

Wouldn’t it be great if all your customers paid you on time, automatically without any intervention? Unfortunately they don’t. In previous blogs I’ve touched on the earlier stages of credit control. Focus for this blog is late payment. You need to be tough with your customers – not aggressive but professional. And you need to do what you say you are going to do, otherwise your credibility is undermined and your debtor knows you are a soft touch.

 

As soon as an invoice goes overdue there should be a clear sequence of events that follows, and that your customer understands. Phone calls initially going through to more formal letters – with set days in between - and then to the point that you instruct a third party to begin the debt recovery process. Other suppliers will be getting paid whilst you dither. Make sure the debt recovery agency that you use has the right experience. Ask for references – we always provide them on request in Octempo and also post them on our web pages.

 

With late invoice payment you generally get what you are prepared to accept. If you get the earlier stages of your credit control process right then late payments should be in the minority. Don’t let late payment become the norm as then – as with most habits – it becomes difficult to break

Search

Categories

Pages

    Blogroll

      bloghub
      Blog Directory by Blog Flux