Have a clearly written payment policy to prevent problems. Have customers sign the agreement, which states when payment is due and what consequences there will be for late payment.

Include specific due dates on your invoices. Adding the phrase “payable in 30 days” is less firm than “due on 30^th”. So remember to include a specific date.

Set up company procedures for collections. Define whose job it is to follow up with custom

So, here are my top 10 tips to improve your credit control process:ers and exactly when statements and reminder letters should be sent and phone calls made. If you can give someone else the job of chasing invoices it can ensure your relationship with the client is not affected.

Email invoices instead of mailing them to shorten the collection cycle. Discuss with your client during the onboarding process of how they would like to receive their invoice, but I would always recommend pushing to do it online.

When a payment date has passed, follow up by phone and email and agree timescales.

Emails and paperwork can easily be forgotten or lost. Phone calls and face-to-face meetings are more effective and ensure you get a response from your client and hold them accountable to their promises.

Remain calm and professional. This is a business transaction -You delivered a product or service, and the client owes you money. Do not let your emotions get the better of you, ensure you stick to your process no matter what your relationship is with the client.

Be precise. Do not let a client end the conversation by saying, “I’ll send something soon.” Get a commitment to a specific amount by a set date. Then summarise the conversation to the client so there is no misunderstanding and send a follow-up email.

Document every point of contact with clients.

This can include emails, letters, phone calls, etc. It can make it easier to track how many times they have been contacted, what they have promised and when the process began to monitor when more serious action needs to be taken.

Follow up each time a customer does not honour a payment commitment.

If for some reason you haven’t been paid and there is an acceptable reason, explain that you must be notified in advance when a payment will be late and then ask when you can expect to receive it.

Hire an external member of staff to do the chasing

Outsource the job can get this done without letting it affect the day-to-day running on your business. Its that simple!

If you are struggling to chase your invoices or maybe you have had relationships ruined with your customers over late payment, please give me a call at 07811393520 and I can help you to implement a process that ensures your business gets paid without any hassle.

Jackie Forster

Jaxstar Solutions is a valuable resource used by Small Businesses and Corporate organisations to help in the day to day running and operational side of their business, enabling them to get back out there and do what they do best…sell their products and services to make money.

Just like a personal Direct Debit for monthly bills, a small business Direct Debit set up works in much the same way, ensuring that payment will be made on a set date. Direct Debit removes the need for customers to view, approve, and action any invoices you send, so you don’t need to wait around for clients to authorise payment upon receipt of a new bill – the payment is made automatically. 

Direct Debit doesn’t just benefit your business, it brings a whole host of benefits to your customers too – benefits that add to the value and quality of service you’re already delivering. 

Here are a few things you can tell your customers about the benefits of paying by Direct Debit through GoCardless. 

• You only need to set up payment once – Complete an online form and, unlike with a bank transfer, cash, cheque or card payment, you won’t have to remember to pay next time. Which means no accidental disruptions to your service, subscription or membership. 
• You won’t ever need to update payment details – Unless you change bank accounts, you won’t have to worry about updating your payment details either (unlike, if your debit card expires, or is lost or stolen). 
• Paying through GoCardless gives you certainty – You’ll know exactly how much you’re paying and when it will come out, which can help with budgeting. 

The best news about setting up direct debit, if you use platforms like GoCardless, they can be synced with Xero so all the invoices are handled online and don’t need a lot of attention from you. If you don’t know how to sync GoCardless and Xero, please send me a message and I’d be more than happy to set you up and explain the process.  

Jackie Forster

Jaxstar Solutions is a valuable resource used by Small Businesses and Corporate organisations to help in the day to day running and operational side of their business, enabling them to get back out there and do what they do best…sell their products and services to make money.

Effective and efficient credit control is critical to the success of any business, reducing the wait for payment and improving cash flow. However, not all businesses have the time, resource, or expertise to dedicate to successful credit management. 

We all know how difficult it can be to get paid on time, but also how burdensome credit control can be for businesses of any size.  

If you are chasing your own invoices it can lead to tension between you and your client, which can ruin that professional partnership and influence their opinion on your company and services. 

All business owners know the effect a bad review can have. When someone receives a great service, they tell a small group of people, but when they receive bad services they spread the word to everyone which can affect your brand image.

To ensure your customer relationships aren’t affected by money, hire someone to do that chasing for you. 

Making the business owners responsible for the presale, the sale and the service and that’s it, then making someone else responsible for the after sale so it’s is not your responsibility and removes that risk of tension. 

Jackie Forster

Jaxstar Solutions is a valuable resource used by Small Businesses and Corporate organisations to help in the day to day running and operational side of their business, enabling them to get back out there and do what they do best…sell their products and services to make money.