Golden rules for Credit Control.

As a number of people will not be able to attend the Thursdays' Herts Business Expo (March 10) I thought you would like to read my thoughts on what I call the Golden rules for Credit Control.

One of the first questions I'm asked when people hear that I run a debt collection agency is

How can I avoid debtors?

The answer is you can’t, but if you:-
A) Carry out due diligence on each and every order.
B) Have a firm credit control policy.
You can minimise your risks.

Due Diligence Check List.

Terms & Conditions:
Are your Terms & Conditions adequate? Who designed them? What are your settlement terms: 7, 14, 21, 30 days?
Can you claim interest on overdue accounts? Can you charge your late payer for costs incurred in the collection of the overdue invoice?
Are you protected against damage caused in the fulfilment of your duties?
Are you protected if the customer interferes with your ability to carry out your work?
If the answer to these simple questions is NO, contact a specialist agency.

Account opening forms:
Do you know who is legally responsible for settling your invoice?
Is your client a sole trader, a partnership, a single Ltd company or part of a group? Where should you send your invoice?
If you don’t have a working account opening form, contact a specialist agency.

Authorisation & Satisfaction forms:
If you are providing an on site service, such as plumbing, electrical, equipment maintenance ask that the client sign an Authorisation form before starting work and then that they are happy with the service after the work is carried out.
The form should be on your company letterhead and should have two boxes.
Box 1) Should have spaces for the customer to write his/her name, property address, and authority to contract your services. There should be a space for the customer to sign that they agree for the work to be carried out as per your terms & conditions.
Box 2) Should have spaces for the customer to again write his/her name and that the work was carried out to their satisfaction or dissatisfaction. In addition, there should be a space for additional comments, good or bad.
If you don’t have an Authorisation & Satisfaction form. Contact a specialist agency.

Please remember if you have any concerns or questions about credit control or the collection of overdue accounts, please do not hesitate to contact David and the Deanem team either by email enquiries@deanemcollections.co.uk or by telephone +44 20 8446 7720