| IN MY EXPERIENCE |
| i have worked with both sides of the late payment issue, in other words, for those who pay late, and for those chasing up late payments. The majority of late payers do so because of limited cash flow within their own business. The difficulty for the credit controller lies in distinguishing whether they truly are going to pay, or if they are stalling prior to winding up the company. When dealing with new customers, credit checks are advisable if possible. Ensure statements are sent monthly, and if a debt becomes overdue, contact the person immediately to ensure they have a copy of the invoice/s due. In practice, after issuing a statement and a telephone call, I send a reminder letter which stipulates that non-payment may result in court action. Don't issue threats and then fail to follow them. Where you tell a client what action you will take, you should be prepared to carry it out. If the debts still remains unpaid, I fill in a county court form ready for processing, sending a copy to the client to inform them of impending action, and giving them the opportunity to arrange a repayment plan if they are experiencing financial difficulties. Before pursuing a debt however, consider whether it's going to be cost-effective to pursue. It does happen that creditors are left with judgments they can't enforce, and legal bills outweighing the value of the debt. |
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