I need help chasing debts
Having too much money owed can also damage your business. This is cash that you need to have in your business and to be able to use to grow and expand. Having them money tied up by being outstanding form customer will stop you from investing in to your business and cost you money to finance your working capital for your day to day expenses.
I need help chasing my debts
Chasing debts is one of the hardest parts of being in business if you don’t do it correctly. It can take time and drain your resources having to call your clients and ask for payment. It’s not enough that you have to do the work for your client, now you have to chase them for payment.
Having too much money owed can also damage your business. This is cash that you need to have in your business and to be able to use to grow and expand. Having them money tied up by being outstanding form customer will stop you from investing in to your business and cost you money to finance your working capital for your day to day expenses.
Chasing debts will take time and patience. You also run the risk of damaging the relationship with your clients if you push too hard to be paid. It’s important that you have a process and system in place to effectively get paid and to avoid the money that you are owed being unpaid.
I have too much money owed to me and it’s hurting my business
Having too much money tied up in debt can damage your business. It can prevent you investing in staff and resources to grow and expand. It can mean that you have to find other ways to fund your day to day cash requirements and look at cash flow financing.
If you don’t manage to get control of this early the debts that you have can easily become bad debts and that you will at some point not be able to get paid for them. Bad debts will over a period of time if you let them get more and more will threaten the future viability of your business.
No business can continue to sustain losses from clients. If you don’t get this under control, you will start to lose control of your business and you will lose money that will impact your profitability.
Can you help me get this money paid?
Its important when you are chasing for outstanding invoices to be paid that you have the right process in place and that you do it at the right time. You need to do this as soon as you can, any delay may increase the chance of the invoice not being paid.
The chasing process should start slowly and then increase. Meaning that the first chase should be by email and remind your client that the debt remains unpaid. You should then try to clear up any queries that the client may have about there invoice. This should then escalate to a telephone call if unpaid.
Its also worth noting that the time that you request payment is important. Do you request after the project was completed or do you have staged payments throughout the durations? Staged payments are easier to manage for the client cashflow and also means that you can delay the next phase until payment is completed if necessary.
How we will help you get the money paid
We need to help you get the right system in place to make sure that you are keeping your business with zero debtors
· Do you have the right terms and conditions in place in your contract that you can keep ownership of the work if the client does not pay?
· Do you ask for payment of the work in advance? In stages? Or after completion?
· Can you place a hold on the work if payment is not made?
· Do you have a process in place for collecting overdue invoices? Can some of that be automated to reduce the time you spend on it?
· When do you take things further and go the legal collection route? Do you have a process in place to do that?
· Do you need help in setting this up and managing the process?
I need this money in my business now!
Constantly chasing money can put a drain on your time and resources. We can help you setup the processes to make it easier.
You need an effective way to chase and automate part of the debt chasing process. Setting up automated email reminders in your accountancy software can help and will normally be enough to get a number of clients to pay any outstanding debt.
Once that is done we can then help you chase the rest of the money and decide when and how to escalate the requests for payment from your client to recover any money due. We can do this whilst respecting the value and importance of this relationship that you have with them.
This service is part of the virtual finance function that we offer to clients to help them manage their finances and get a better control of their business. If you want to know more please arrange a call and we can discuss your requirements.