7 tips to stop unpaid invoices from accumulating.
Having proper checks and balances in place can speed up cash flow to your business and stop debt from accumulating.
Here are 7 tips to stop debt from accumulating.
Tip 1 – Robust terms of business
Make sure that your terms properly reflect your processes. Always keep your terms under review especially as the business grows.
Often, businesses forget to adjust their terms, and they only realise that they are inadequate when a customer does not pay.
Do not wait to review your terms of business. Instructing a lawyer to prepare robust terms of business will make it more difficult for a customer to dispute payment.
Tip 2 – Invoice properly
Prepare an invoice that has an invoice number, fully sets out the product or service you offer, the price, whether VAT is payable, the time limit for payment, details of how to pay, and your terms of business.
Tip 3 – rack
Track when invoices are sent so you can diarise and plan to receive monies into your business.
Tip 4 – Manage
Manage the invoicing process or pay someone to do it for you. It is important not to let unpaid invoices slip and remain unpaid.
Tip 5 – Review
Review customer interactions, what are they saying? Is there a reason why they are not paying? Can they pay? Will they pay? Does your customer think you’ll let them get away without paying?
Tip 6 – Chase
Send reminders before the due date to try and avoid late invoices. Swiftly chase any late invoices.
Tip 7 – Legal action!
If you find yourself with an unpaid invoice, take swift legal advice. Factor in a budget to help with the recovery process.
At Johnson May solicitors, we offer low fixed fees to help our clients with debt recovery. We are based in Beckenham and London City but we service clients throughout England.
Our debt recovery process follows an approach that champions communication to recover payments swiftly for our clients. If you would like to learn more, call us on 020 8150 7173, Email [email protected] or make an online enquiry.
