I could write a hundred thousand words or more on the topic, depending on how deeply you would like to get into it, for the purpose of this Blog, I will just stick to the headlines, and as always if you want to find out more you can contact me directly.
So what are the foolproof ways to get paid?
Like everything in credit it is never a single thing it is a combination of things done correctly and in the right order. So to make sure you will get paid the following steps should be taken:
- Know the EXACT legal entity of every one of your customers
- Have a simple system to check their ability and willingness to pay
- Set clear Credit Lines for every customer as the amount you are happy to extend to them
- Set out clear terms that are enforceable and enforced.
- Have trained, educated and committed credit controllers watching at all times
- Always look at your exposure not simply the outstanding balance
- Develop different risk mitigation strategies
- Proactively manage every balance on the ledger
If you follow these steps you will succeed, if you want a simple fix and the eight steps above seem like too much work, then my advice is simple - Credit Insurance.
It will not eliminate your losses, it will protect you from the effects of a major loss that could have a detrimental effect on your business. There are times it is appropriate and times when it is a costly unnecessary expense - If you would like to find out more just let me know and I am happy to point you in the right direction.
In the meantime, please don't despair, there is a solution to every problem, all you have to do is find it.
Article written by Declan Flood, Chief Executive of Irish Credit Management Training. Who is available to help you to get your credit under control through focused credit management education, and training
Declan is also happy to deliver motivational training for your Credit and/or Sales Teams on how to improve your whole business through the proper management of credit and by developing simple risk mitigation strategies and by putting the customer at the front and centre of everything that you do.
He can also show senior managers how a credit focused business can improve sales, improve customer experience and improve the bottom line.
You can contact Declan by email at email@example.com or by phone on 087 244 7052. Always happy to help.