Member Benefit Provider Ken Brown will be providing some great tips to help you avoid common pitfalls when it comes to getting paid for your services.
Ken’s tips are delivered in the format of the 7 Deadly Sins of Credit Management – Here’s the third tip in the series!
Deadly Sin No 3 – Sloppy paperwork and lax administration
It’s unlikely that you will be consistently paid on time, every time, if you are lax with your paperwork.
Sometimes you may not even get paid at all.
Errors on your part that can lead to you not being paid on time include:
- Setting up your customers details wrongly on your accounting records – common mistakes being name and address/typographical errors
- Failing to quote order numbers on invoices
- Unsigned proof of deliveries (or timesheets)
- A failure to make clear and get specific agreement to your credit terms
Attention to detail is paramount. When did you last check an order received from a regular customer to ensure it was from the exact entity you had set up on your accounting records? Always worth checking regularly!
Don’t fall foul of any unscrupulous practices or ordering systems engineered to have you unwittingly supplying a lesser established company as the ‘Fall Guy’ just in case a project goes wrong. Wherever possible your credit limits and dealings should always be with the company within the group that is financially able to pay out, even when a financial problem occurs with their trading division.
Occasionally, you might like to seek cross-company guarantees and/or Directors, personal guarantees where merited.
Should you need to seek any assistance in the areas of guarantees relating to company transactions don’t hesitate to contact us to discuss your needs.
Special offers for NBV Biz Ex Members
NBV Biz Ex Members can access 8 free credit reports and a standard set of terms and conditions – just register with AccountAssyst to access the reports. Log in and visit the Member Benefits Access pagefor full details of the service.
Are you having trouble finding the time for credit control or chasing outstanding payments? NBV Biz Ex Members can access Direct Route’s debt recovery services free of charge (saving £200+VAT) meaning that commercial debts of up to £3000.00 can be recovered at no cost to you.
You may also wish to access the ‘Letters Before Action’ service which provides your debtor with an opportunity to pay the amount owed to you without incurring late payment fees.
Log in and visit the Member Benefits Access page for full details of the service.
Ken Brown represents both Direct Route Collections Ltd and AccountAssyst, an online credit management service. Direct Route provides a solution for recovering debts whilst AccountAssyst provides a prevention. More details about both services can be accessed by logging into the Members’ website.