When your business is winning new business, it’s great for your P&L but if you don’t follow up your invoices and get paid, it’s not great for your cash flow.
With Jobkeeper payments finishing at the end of March 2021 month, it’s quite likely payments will slow down or in some cases, you will not receive payment at all.
Follow up your customers by calling them to confirm delivery or satisfaction with the goods or services you have provided; if there are any reasons that could give rise to a dispute, find out early and not when payment is overdue. The sooner you resolve any issues, the sooner you will be paid.
Stay close to your customers, ensure they are aware of your terms of trade and, from the start, ensure they know that you chase up your invoices promptly. Those who shout loudest get paid first!
Do you have a clause in your terms & conditions that will allow you to recover your debt collection costs back from your debtor in the unlikely event that they do not pay?
If you do incur costs, you want peace of mind that you can recover these as well as the debt.
There are many clauses that can assist in the speedy recovery of your debts, they include the following:
- Caveat / charging clause
- Jurisdiction clause
- Cost clause
- PPS (Personal Property Security)
Kearley Lewis specialises in providing 'business to business' debt collection services. We can help you collect your debts and assist you with reviewing and updating your terms and conditions.
Please call our office on (03) 9629 8777 or email sales@kearleylewis.com.au.