ACT NOW!!
The latest Lockdown will cause more problems for businesses – get ahead of the game and make your New Year Resolution Count !!
A New Years Resolution for Great Credit Management.
Start as you mean to go on …..
Know your Customer – Do you really know who you are dealing with?
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Make sure your customer completes an account application
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Obtain a letterhead from the customer to confirm the completed details
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Are the details correct? If the customer is a Limited company or an LLP then the details can be checked on Companies House
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How long has the customer / debtor been trading? Are their accounts up to date?
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Have you sent them your Terms and Conditions of business, ensure they are incorporated into the contract, for help on this please see our Terms and Conditions Consultation
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Draw your customers attention to your terms of payment and stick to them
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Set an appropriate credit limit ! A credit check will offer guidance in this area but is not a guarantee that the debtor can / will pay. When setting a credit limit make sure that a bad debt for the value would not have direct consequences for your business
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Beware of over exposure on credit limits. Do you need some form of security such as a Directors personal guarantee?
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If the risk is too high for your business – be prepared to say NO!
Remenber – A sale is not a sale until it is paid for !!
RELIANCE ON INFORMATION POSTED
All content posted on the Lane and Co website is intended for information purposes only and does not represent legal advice on which reliance should be placed. Visitors to the website are hereby placed under notice that they should take appropriate steps to verify such information. No visitor should act or refrain from acting on the information contained in any article without first verifying the information and as necessary obtaining legal and/or professional advice.
Leave your debts in our capable hands
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