Top 10 Tips For A Secure Business Future

For all businesses it is a somewhat uncertain adventure when dealing with new customers or suppliers, one which is some instances we as business owners or managers have to take all the information given to us and make an assessment as to deal with these new subjects. 

My many years experience in the finance industry have given me the knowledge that no one has a crystal ball and all we can do is attempt to protect our business selves by gathering as much information as possible to ensure we do not end up with bad debts on our ledgers.

Now, this is where Creditserve can help, our system provides an online, instantly available, affordable and up to date credit checking system which allows you to carry out credit checks on your new and existing customers and/or suppliers to ensure they have the financial means to honor payments/contracts.

Key Features: 

• Instant credit checks online
• Full range of in-depth credit reports with Risk Analysis
• Discounted rates
• Live Feed of information
• Debt recovery service

Instant credit checks online 
Clients can access Creditserve's online credit checking service for instant reports on a company’s credit rating and financial history.

 

Extensive range of credit reports 
Reports range from in-depth business reports, including full accounts and credit ratings, through to simple registered information, we also offer Companies House documents and live monitoring service.

 

Beneficial rates 
We offer extremely cost effective rates for one off credit checks. Regular credit checks should form part of your credit management routine on new customers, defaulting customers and those seeking an increase in their credit limit and therefore an annual subscription is often the most cost effective way to credit check your customers and suppliers.

 

Up to date information 
Our range of credit reports are updated on a live feed to ensure they include the most recent and accurate information.

 

Debt Recovery Service
Creditserve also offer this back up service to the online credit reporting and work on a no collection-no commission basis. We work on all cases on pre legal basis and add costs and interests to the debt value which you are entitled to from the time the debt becomes overdue.

 

Crucial Top 10 tips for all credit control departments:- 
1. Always perform credit checks to ensure you know your customer
2. Get your customer to complete a credit application form
3. Wherever possible obtain a personal guarantee from company directors
4. Get a signed contract incorporating your terms and conditions
5. Give your customer a credit limit and review this regularly
6. Invoice on time and ensure details are accurate
7. Phone your customers before payments are due to ensure there are no queries
8. Send monthly statements
9. Use properly drafted collection letters
10. Consider outsourcing your non paying accounts to a reputable debt collection agency like Creditserve Collections

If you would like any further information please feel free to contact me on 01992 414222 or email martin@creditserve.co.uk LinkedIn Martin Brown or follow on Twitter @creditserve

The Four Pillars For A Successful Credit Control

Many thousands of businesses go bust every year simply because they are owed money and can’t juggle the cash flow. Systematic, well planned credit control practises must be put in place right at the start otherwise your company will join the mountain of other failed firms. Checking references, getting credit reports and examining company business information is a sign of strength for a business and lets your customers know you are serious about credit control

1. Get a detailed application form filled out correctly by your potential customer.

So many businesses are in the rush to get orders that they do not do the necessary groundwork when setting up customers, in some instances not even knowing the correct legal entity or billing address. All of these minor details can slow up getting paid on time!

2. Do the necessary credit checks on ALL customers small or large.

When you are looking to supply a customer you need to carry out a credit report, these reports are instantly available through credit reference agencies online and can be purchased on a 'Pay As You Go' basis at under £10 per search or within bundles which can cover you for a years unlimited credit reports. 

In my professional opinion the bundles are the way to go as you get so much more within them.

3. Stick to your credit limit and credit terms.

From the outset you will need to be tough as customers will look to bully or bluff a higher credit limit from you, so stick to your limit! This also happens when it comes to payment with some customers looking to set their own terms of payment. You will need to be firm and not waiver because if you allow them an inch they will no doubt take a mile! 

You could even make a telephone call or send an email gently reminding your customers that payment is due on a certain date, this shows good customer relations but also that you have your finger on the pulse.

4. Don't be afraid to use debt recovery agents to recover outstanding monies owed to you.

This is one step that businesses do not grasp as much as they possibly should. You can utilise the professionalism of an outside debt recovery agency without costing yourself or your company time and lots of money. Any debt recovery agency worth its sort will not charge upfront fees, they simply apply a commission charge if and when they are successful. 

Obviously doing the chasing and sending letters has an expense to yourself so if you are getting nowhere with a delinquent debtor why not pass it on to the agency and let them recover the money for you. 

Usually a good commission rate is between 7 - 12% on any monies recovered, but remember it is your right to add costs and interest to the debt from the date it becomes overdue.

If you would like to know more or have any questions please email me on martin@creditserve.co.uk or follow me on twitter @creditserve