CREDIT CONTROL - Chasing overdue invoices

Discussion in 'The Lounge' started by Eveadel, Dec 7, 2007.

  1. Eveadel

    Eveadel Well-Known Member

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    Hi Can someone give me advice on a situation which has happened a couple of times.

    My husband has his own business. Just spoke to a company whose invoice is overdue now by 60 days to which I was told they are having problems getting their payment so unable to pay us yet. Should we be ok with that?

    Can someone advise on good credit control talk please as always feel Im getting fobbed off.
     
  2. glitzyglamgirl

    glitzyglamgirl Well-Known Member

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    Its difficult to advise really without knowing that the company does, but I suggest asking them if they want arrange a payment plan, a certain amount per week or per month for example, but let them know there will be a small percentage interest on that. Let them know in a non-negotiable way they have 2 choices....pay in full or installments, but either way something needs to be paid.

    As for good credit control talk, the trick is to be firm but friendly, and let them know you wont be fobbed off by offering suggestions to every problem they think up :lol:
     
  3. leckershell

    leckershell Well-Known Member

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    Do your invoices have a term on them, such as "payment due in xx days" ? If they do and they have gone past that then you can obviously take things further, if they haven't then you may struggle a bit.

    I'd start with letting them know the date the order was, the day they received the goods (or the date you shipped them), and when the payment was due. I don't know what the terms and conditions are in your company but if you had it written anywhere that late payments were subject to a fee you may want to let them know the amount outstanding plus the late payment fee. Working out interest may be a bit tricky which is probably why companies often have a set late payment fee, but if you didn't make them aware of a fee when they placed the order don't charge one now or you could get your ass kicked!

    I'd write a pretty stern letter either onto red paper or with some red font, explaining all of the above (quote any lines from your terms of business that they have breached) and that if they don't pay the amount outstanding then you will take matters further.

    If you get no reply try following up with a similarly harsh phone call.

    If still no reply, I suggest looking into debt recovery companies and asking them to take over your case...

    Hope that helps a little? It's something I do in my job (sort of) so if you need any more help drop me a PM :)
     
  4. PinkPunch

    PinkPunch Well-Known Member

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    Eveadel.. thats the downside to my work too.. people who don't pay :x

    Yeah.. what terms did you give them? Chase them up with letters. As already said, offer them a payment option like a standing order for a smaller amount each month or something.

    What kind of business is it? If its a service sort of company, try and take 10% deposits before starting to safe guard you a bit.
     
  5. PinkPunch

    PinkPunch Well-Known Member

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    Also, try and remain as professional and calm as you can. When these things flare up and get out of hand, you can say goodbye to your cash!

    Stay in touch with them, offer them help in any way to pay it. If it ever does get to the court stage, it will work for your benefit.
     
  6. elaine22

    elaine22 Well-Known Member

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    OH is a credit controller and in these situations - especially as you are getting fobbed off - he says he asks them to pay up within 7 days (or whatever) or else he'll take them to court to get the money.
     
  7. Eveadel

    Eveadel Well-Known Member

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    Thanks girls.

    My husbands busineess is a Health & Safety Consultancy so its his knowledge that they pay for. My husband provided one days training to one of their companies they do work for.

    I think the worry is we are a one man company so all the work my DH does is our livelihood
     

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