Strengthening your credit control processes
Matthew Sales, Business Development Executive - Redwood Collections
With tough restrictions in effect, Redwood Collections offer some useful tips to help strengthen your credit control process to avoid any unexpected loss of income.
- Know with whom you are dealing. It is imperative that the entity of your client is clearly stated on all correspondence. Should the undesirable situation arise where you may have to pursue a client for payment, ensuring you have the correct entity will greatly increase your chances of recovering monies owed. Always confirm whether you are dealing with an individual, limited company, partnership, LLP etc.
- Stipulate clear and concise payment terms. Establishing your payment terms from the outset will avoid any ambiguity when contacting a client for payment. This should be made apparent on all invoices, statements and contracts (if applicable).
- Make sure your terms of engagement or equivalent are available to the client before an agreement is made and if possible, signed and returned before taking on the work. A common issue found when instigating legal action for an overdue invoice is providing evidence to show when terms have been agreed and by whom. Whilst there are grounds to issue a claim on the basis of an oral agreement, this will never be as robust as a signed document.
- Collecting during Covid-19. Many experts have shown hesitancy when chasing invoices during the pandemic. Cash flow is essential for all businesses, more so than ever during this unprecedented time. It is quite likely that your debtor has more than just one creditor and therefore is important to keep yourself at the top of the list. Consider a third-party credit management approach to address the situation delicately and maintain your relationship with the client. Redwood’s “RCM” facility ensures sensitivity whilst keeping the goal of collection in mind.
- Be prepared to use a third party if required. It is no secret that the expert witness community has been plagued by bad debtors for decades. Have a preferred debt collection agency or equivalent third party in your arsenal for when and if it is needed.
Redwood Collections is the leading debt recovery agency for Expert Witnesses in the UK and offers ‘no collection no commission’ debt collection and credit management services. Please do not hesitate to contact our Business Development Executive for Expert Witnesses, Matthew Sales, should you have any questions.
Matthew Sales | Business Development Executive | Redwood Collections
Direct line: 0208 288 3611
Main Line: 0208 288 3556
Email: msales@redwoodcollections.com
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