Q. As a small business owner, I’ve had problems in the past with customers not settling their invoices on time. I’d like to expand my business significantly in the next 12 months, what can I do to improve my debt collection processes?
A. You need to ensure good credit control procedures are put in place and that your terms and conditions are up to date. You should ensure that you know most importantly who you are dealing with i.e. is it a Limited Company, partnership or sole trader. You might want to consider obtaining a personal guarantee from a director of a company (to protect yourself in case the Company ceases to trade).
Most importantly keep in regular contact with your debtor concerning the payment of any outstanding invoices, do not delay in chasing payment as in many cases the creditor who shouts the loudest inevitably gets paid quicker.
Kally Singh, Partner
This article was previously published in the Stamford Mercury.
