1. Get to know your Customer...
* Credit check and monitor so you get alerts when things change
* Request and check references
* Set manageable credit limits
2. Agree payment schedules...
* Set them out at quote stage
* Perhaps cover cost of materials up front
* Set and agree stage payments
3. Get agreements in writing...
* Don't take verbal assurances no matter how quick they need the job doing
* Get a purchase order even if it's just a name
* Check that the person placing the order has the authority to do so
4. Process check...
* Do they have a set deadline for payment runs?
* Do they use purchase orders?
* Do they need the invoicing worded in a specific way?
5. Check your bill has been received...
* Iron out disputes early on - don't be surprised 30 days later
* Is there anything else they need?
* When can payment be expected?
6. Chase when you say you'll chase...
* If they've given you a payment date, call a couple of days before to check it's on its way
* If you say you'll call back tomorrow, call back tomorrow
* Follow their process so there are no excuses
7. Ask for help...
* From me Hungry Horace :)
* Debt chasing Agencies
* Invoice factoring
8. Streamline business processes...
* Utilise business support - they are a very valuable asset
* Get the right people doing the job - someone who enjoys doing it
* Fee earners chasing money eats in to your profits!
9. Manage and monitor suppliers...
* Credit check and monitor them too
* Spread your credit
* Meet with them regularly to review prices etc
10. Learn from your mistakes...
* Make changes
* Mitigate the risks
* Don't be a busy fool!
The definition of insanity is doing the same things over and over again and expecting different results!
These Blogs are my own personal opinion and are only based on my own experiences, please feel free to comment your agreement or disagreement but I take no responsibility for actions taken as a result of my blogs. I also apologise in advance if you find the content offensive or inappropriate.