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Ask the expert – Debt Collection, made simple.

by | May 21, 2019 | Payment Portal

Karl Baker is Recoveries Manager at Taurus Collections and has 25+ years’ experience in the debt collection industry, helping businesses get paid on time.  Taurus Collections (UK) Ltd provides fast and effective business to business debt collection solutions to a range of small and medium commercial businesses across the UK.

How many times do you hear it from your customers?  4 or 5 times per month, maybe more: “We can’t pay because a) we don’t have a copy b) we don’t have a PO number c) our system made an error d) the manager who signs the cheques is on holiday e) the rates are wrong….the list goes on.

We know how you feel.  And it is frustrating for you as a business-owner.  That is why the best way to combat these excuses in Debtor collections is to have all your ducks in a row, and that I mean procedures.  Calling, emailing, letter-writing, all need to be aligned in your chase procedure by your credit control department to keep delays in payment right down to a minimum.

Here’s a few quick tips to boost your cash flow when considering debtor collections:

  • Communicate – call your customers 14 days after sending an invoice. That way if your terms are 30 days, you have 2 weeks to iron out any queries or disputes, and then there is more chance of getting paid on time.
  • Follow-Up – use formal communications when the invoice becomes overdue (i.e past 30 days) a written correspondence actually stating “OVERDUE” in the email title is very hard to ignore, and often gets a swift response.
  • Legal – if a customer has reached 60 days without a valid reason for non-payment and/ or isn’t responding to your calls, emails or letters, DO NOT DELAY. There may be an issue with your customers finances and the next correspondence you receive in the process of debtor collections could be a Notice of Insolvency.

I hope that these quick tips are useful for your Debtor collections efforts and these are procedures you can put into place in your business today.

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