Tel: 01424 217698 or 07971 996658 Fax: 0845 127 4385
E-mail: Rycroft Associates
Any form of debt collection is always good (some tips later) and is better than doing nothing at all
Cost, the first thing to do is work out how many overdue accounts you have, whereby you are legally entitled to be paid,
then work out how much your bank or lender charges you for this amount, - this is what it is costing you to finance
someone elses credit and the amount outstanding is money you don't have as cashflow, so you are having to borrow
this to purchase more goods.
By using an outside source to collect overdue debts, you may find that this is:
Credit Insurance Structures
Credit Insurance Costs
Jargon, Myths and History
Fax back contact form
Finance quote form
Credit Insurance quote form
This is a growing section and any ideas/techniques to share are always welcome.
The best way to make sure that your hard earned cash comes in on time is first be pro-active in asking for overdue money - this may for some people seem pretty obvious, but you would be surprised at how many people delay or don't want to upset their customer or don't have the time (if you fit in this bracket, then I suggest you call us, unless you are a bank in which case this probably suits you).
One of the most productive methods is to make a polite call BEFORE the due date to check what will be on the next payment run. WHY? simple , how often do you get an overdue debt which you then chase, only to be told that some bit of information (order number?) or documentation (delivery note?) is missing. If you can clear all these problems before the cheque run is due, you will substantially increase the likelyhood of being paid, not just because you are showing the buyer that you are active but due to the fact that: If the purchasing department find something missing that stops them processing payment, chances are rather than getting the missing part (work to them) the invoice will go in the pending tray.
If you can clear the problems before they happen, then there are no EXCUSES.
Having a structured approach (especially where you have many accounts) is important, if buyers are chased on a regular basis they tend to pay those that ask first.