Offering Customer Credit

If you are prepared to offer credit terms to attract customers then you must make sure the debt is collected.  This will take time and effort so there are some important things to consider.

1.     Worthiness: Only give credit to those who are credit worthy.

2.     Timeliness: Don’t delay in sending out your invoices – do it the day of sale.

3.     Accurate: Ensure your invoices are sufficiently detailed and accurate to avoid further delays from Customers querying them.  Make sure you are sending them to the correct address – either postal or email.

4.     Enforce: Make sure you enforce strict payment terms.  Make sure your invoice clearly states when the payment is due by, and follow up with a phone call just prior to the due date to establish that they have your invoice and payment will be made on time.  If payment doesn’t arrive on time, keep in constant verbal communication to establish why you weren’t paid and when you will expect payment.  Make notes of who you spoke to and what they said.  Never let an unpaid invoice slip through your net.  Check you Aged Receivables report once a week.  Consider withdrawing credit terms to that customer on future sales until the debt is paid to minimise any catastrophe.

5.     3rd Party – Don’t be afraid to use a reputable Debt Collection Service if you are not succeeding in receiving payment.

Ezidebit.