Iline Potgieter - Safeguard Your Business From The Potentially Incapacitating Effects Of Non-Paying Clients RSS Iline Potgieter - Safeguard Your Business From The Potentially Incapacitating Effects Of Non-Paying Clients2017-11-28 One should always remember that proper planning and management are the keys in effectively dealing with
outstanding debts, which is one of the biggest challenges for small and medium enterprises in South Africa. In the previous edition of Business Focus you will recall that we dealt with ‘Avoiding Bad Book Debt’ and ‘What Should Be Done?’. But what if you can identify a potential non-paying client and diminish your risk? We have decided to highlight a few points that one should pay attention to before one generously grants credit and/or randomly just renders services:
Q: When should I consider the handover of a non-paying client? A: Once your account and/or invoice is 90 days outstanding. Q: What will it cost me to handover a non-paying client? A: Normally the cost will be discussed between yourself and your debt collector. However, Dynamic Debt Solutions works on a ‘no collection â€" no fee’ basis. Q: How do I deal with nonpaying clients, as I still want my business to grow? A: Understand that late payments can create a huge crisis for your business â€" take prompt action to safeguard your business against late payments. Follow up with your clients, contact them immediately if a payment is late, find out why payment was not effected or delayed to help avoid this in the future. Follow up on outstanding invoices on a regular basis. Be front of mind â€" by making it clear to your clients that you expect to be paid on time and always get in touch with your client if payment was not effected, you’re more likely to be front of mind when clients schedule payments. This means a customer juggling payment due to cash flow problems will be more likely to give you a higher priority than a business whose systems are more relaxed. Many people or businesses ‘pay the ones that makes the most noise’, within reason. Ensure that this is you. The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances. Tel 086 155 2288 iline@ddsol.co.za www.dynamicdebtsolutions.co.za |
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