How to manage creditors better
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“My creditors are taking up a lot of my time. How can I manage them better?”
Here are my top tips for managing creditors better.
Clear communication and transparency at the onboarding stage
Your customers will listen twice as hard and take in twice as much when you are onboarding them. At the onboarding stage, they have bought into you and the service or the product that you are going to provide them. They are listening. This is the perfect time to explain in writing and also verbally what your payment terms are when the invoice can be expected, what the due date is and how the payment can be made. Make it clear to your clients how you like to work and they will listen.
Consider how you are receiving payments
If you are taking payment via an automated platform such as Stripe, GoCardless then make sure your clients are set up properly as part of your onboarding. So make sure they set up their payment details before you commence the work.
If it’s via bank transfer, have you considered taking payment in advance or a percentage in advance? This isn’t applicable for all businesses or all products or services. So if it’s not, is your client aware that the payment is due by bank transfer and when that due date is. Being clear, communicative and detailing exactly what the expectations are can really help your credit control.
Consider using an online accounting system
By using an online system such as Xero you can send clients invoices, and also a reminder email that you can turn on and turn off. Have you set that up, make sure you use it. Sending your customers an automated reminder, 24 hours after the due date, then three days later, and again 7 days later. This acts as a prompt to remind them to make a payment. So make sure you do that.
Never let go of money owed to you
If you have completed the work, if you have provided the service or the product, and you have chased and you aren’t getting anywhere then, do seek professional advice. I am able to give advice on some very quick steps, quick tools that we can take to get that money back into your business. One way to address non-payment is to send a letter of intent to take them to court. But this is something I can advise on.
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