The affects of Corona Virus on Trading
In these testing times businesses large and small will be heavily impacted by the Corona Virus and this will affect all of us.
Now is the time to be strict with your clients to ensure prompt payments are made to make sure you have adequate cashflow.
Herewith Questions and Answers which may help you with your credit control and cashflow
Q: How do I know my clients are able to pay me?
A: Pre-check your clients via our instant online business credit report service. This will provide you with a good indication of your clients health and what their risk score is.
Q: Is there anything I can do to inform clients of outstanding invoices?
A: We would recommend you send emails one week before payments are due just to remind clients of the due dates.
Q: What do I do if the usual Payment has not been received on time?
A: Contact your client immediately by telephone/email with a gentle reminder that payment is overdue. Communication is key to maintaining relations with clients
Q: What happens if my client is ignoring my request for payment?
A: We recommend you send a final debtor letter with specific dates, etc.
See Creditreform FREE pre-collection letter
Q: What do I do if the client says they are unable to pay due to the Corona Virus?
A: Providing their answers are reasonable and justifiable request an immediate percentage of the debt due and you will then propose a payment plan for the balance
Q: What if the client still requires services/products even though they not paid their invoices?
A: If they are genuine clients and you feel they will pay we recommend you supply addition goods/services on a pre-payment basis and a contribution payment towards the settlement of the over due invoice(s).
Q: What happens if the client fails to respond to any of my emails, letters and phone calls?
A: You will need to consider take further actions which may include legal proceedings.
Q: How do I start further actions
A: We recommend you initially outsource to a third party debt collection agency who operate on a No Win No Fee basis charging an agreed commission against monies recovered only.