Member Article

How to: Chase debts effectively

It can be difficult to ask slow paying customers to pay their debts, especially for small businesses, but the key to getting it right is having a set of actions and a timescale to chase debts methodically after the issue of a sales invoice. It can be time consuming if you have a few invoices to continuously chase. Here is Commercial Domestic Investigations plan to take the stress away.

A typical credit control timetable must include the following:

Before the payment date is due, follow up with the client to ensure they are satisfied with the service that they received and ensure the client has received the invoice.

Just after the due date of payment, email the client politely informing them that no payment has been received and ask for any known reason.

One/two weeks after the due date send a statement to the client, outlining that the payment is overdue.

Two/three weeks after the date, phone the customer to commit to a payment date and make sure to document the phone call.

One month after the date, put the client on stop; if this is not an option send out a formal letter explaining the consequences of non-payment.

Four/six weeks after the date ensure that communication channels remain open and document every phone call.

Six/eight weeks after the due date, it is now time to stop phoning the client and send a formal letter explaining the next steps which will be legal action.

Any more than eight weeks, begin legal proceedings.

This was posted in Bdaily's Members' News section by Steve Hall .