Collecting money from customers is a necessary task. Some customers are angels, paying on time without trouble. Others however, will need monitoring carefully and pursuing vigorously.
Collecting Money From Customers
Some customers will deliberately pay late. Others might just be disorganised and need a reminder or statement of account to be sent to them. Whatever the reason, if after reasonable requests and reminders have been sent, the money still hasn't arrived, you need to take action.
To learn how to take practical and effective action to recover overdue invoices through the courts, watch our online courses. Click here for more information on the courses and how they will help you conquer your cash flow.
Prevention is better than the cure, so you should also consider the steps you can take to minimise the risk of invoices falling overdue.
It depends upon your business as to what payment terms you give customers. Ideally, you want cash upfront or cash on purchase. However, not all businesses have the luxury of this. If you do give credit, the terms on which the credit are given need to be made clear to the customer, to give the customer the best chance of complying with them.
Terms and conditions can be tailored by a solicitor to meet your exact requirements. Whether you go to that expense is up to you. At the very least, key terms you want to ensure your customer knows when payment falls due.
For lots of other useful steps you can take to improve your cash flow and to make life easier when pursuing unpaid invoices, download a copy of our free guide to cash flow.