Top 10 Tips for Debt Control

20th July 2017
Top 10 Tips for Debt Control image

Top 10 Tips for Debt Control

1.         Check out your customer

Before conducting business with a customer get to know them to try and ensure that they will be credit worthy.

Collect evidence that your customer is who they say they are by getting copy utility bills or bank statements.  Carry out credit checks, and insist on a payment up front if the credit rating is poor or questionable.  Request trade references from their other suppliers, to see if they are paid promptly and in full.

2.         Provide your Terms and Conditions

A well drafted set of terms and conditions can protect you in case of late or non-payment.  You should ensure that the customer has these from the outset, and if possible get the customer to sign to acknowledge receipt and consent to them.

The terms and conditions should set out the maximum time allowed for payment (e.g. 30 days) together with a sanction for late payment (e.g. interest – include the rate also).

Occasionally a retention of title clause may prove handy, which states you retain ownership of the goods until paid for in full and that you retain the right to recover the goods if they do remain unpaid for.

3.         Make it easy for the customer to pay

Give the customer all the information that they need in order to pay, e.g. your bank account and sort code, purchase order number etc.  If possible have a variety of different payment methods available, such as direct bank transfer, card payment etc.

4.         Set a Credit Limit

Do not allow customers to build up large credit limits, bill them regularly and or insist upon a payment up front or on account.  Once you set a limit then stick to it, and don’t allow a customer anymore goods or services until your outstanding charges have been paid for.

In certain cases insist upon payment in full up front if for example you doubt the customer’s credit worthiness.

When dealing with limited companies it is also useful sometimes to obtain a personal guarantee for your fees from a director, so that he or she can be personally liable in the event of default by the company.

5.         Submit invoices regularly

Invoice your customers regularly, so credit is not allowed to build up and to ensure so far as possible that you get paid on time.

6.         Have a good Credit Control System

Keep track of invoices that are awaiting payment and those that have fallen overdue.  Send reminder letters, and or call the customer to ask for payment or an explanation of the delay.  Try to speak to the person responsible for actioning or authorising the payment, e.g. the accountant or financial director.  Make sure you call at suitable times, i.e. not lunchtimes or too late in the day, so you “catch” the person.  Monday mornings are often a good starting point!

7.         Resolve problems and deal with excuses

Occasionally the customer will have a genuine issue that will need resolving before payment will be made, such as the goods are faulty or they are not happy with a certain aspect of your service.  Try to resolve these as soon as possible to ensure that you get payment. 

Often customers will use delaying tactics (i.e. excuses) e.g. not received an invoice, have sent a cheque in the post etc.  Deal with excuses promptly, e.g. fax a copy of the invoice over to the customer and ring the customer to ensure receipt, ask for the cheque number and the date posted and check your post the following day.

8.         Keep full records

It is important to keep a full log of telephone calls, correspondence etc, to help you make decisions, how to proceed and possibly to use as evidence at a later stage.

9.         Stop the accounts

If payment is not forthcoming, stop providing the goods and or services until the account is brought up to date.  This will at least limit the sums that you are owed.

10.       If needs be take enforcement action and go to Court

Sending letters after letters demanding payment can be a wasted exercise, as the customer may think that this is just bluff.  If you have not been paid and you have given the customer a reasonable opportunity to pay then if needs be commence legal proceedings promptly to maximise the prospects of recovery.  Some times it may not be commercially appropriate to commence proceedings, and if you are in any doubt then speak to us!

If you do have any problems with customers relating to non-payment of your invoices, then please contact either Daven Naghen on 01775 722261 or daven.naghen@maplessolicitors.com or contact Gemma Mayer on 01775 722261 or gemma.mayer@maplessolicitors.com


Changes to Lasting Powers of Attorney image

Changes to Lasting Powers of Attorney

The system of Lasting Powers of Attorney is due to be significantly overhauled following The Powers of Attorney Act 2023 which received Royal Assent on 18th September 2023.

 

The aim of the changes is to modernise the process of making a Lasting Power of Attorney and to make Lasting Powers of Attorney more digital (although it is stated that there will still be a paper process for those unable to use the digital system).

 

Whilst many people may welcome a more digital system, for many, digital processes are daunting and many people are uneasy about our lives becoming more and more digital. Indeed, for some it is simply not possible since they do not have internet access or are unable to use the internet confidently.

Inevitably, when any system or process is changed, there are often “teething problems”. Lasting Powers of Attorney are sent to the Office of the Public Guardian to be registered and it is possible that they will suffer such “teething problems” whilst they settle into the new system.

There will be further direction from the government as to the implementation of the Act and a date for the changes will be set. In the meantime, if you are considering making Lasting Powers of Attorney, you may wish to speak with one of our lawyers before the changes are implemented so that your Powers of Attorney can be created under the current system.   

To discuss Lasting Powers of Attorney, please contact one of our lawyers in the Wills, Lasting Powers of Attorney and Probate Department:-

Jamie Dobbs- jamie.dobbs@maplessolicitors.com
Jane Mawer- jane.mawer@maplessolicitors.com
Faye Blair- faye.blair@maplessolcitors.com

Or telephone the office 01775 722261 and ask to speak with one of the team.

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Testimonials

Jamie Dobbs FCILEx

"I should like to take this opportunity to express my very sincere and grateful thanks for Jamie's unfailing helpfulness and efficiency in all aspects of the handling of my late stepmother's estate. Jamie have always replied to my (many!) queries promptly and comprehensively which has been a enormous help throughout what I know can be a fraught and stressful process. Sadly, it is increasingly rare these days to experience the highs standards of service that Jamie has provided."

Gemma Mayer LLB

"I would highly recommend Maples Solicitors, especially Gemma Mayer, for any conveyancing work. The level of support and professionalism was excellent at all times. I also felt if I needed to ask or clarify anything that it was not an issue. Buying and selling a house is stressful enough, but Gemma helped me through it step by step."

Anita Toal LLB BA

"I think you are brilliant. You can use my comments above. You are efficient, friendly and quite clearly very good at what you do. Mainly you don’t leave people hanging around too long for." "So easy to talk to her and she understood what I wanted. She put me at ease and I cant thank her enough"

James Turner BA

James Turner was extremely helpful with our buying process. Everything went smoothly. We are very happy with the level of professionalism demonstrated by the office. Highly recommended solicitors. Will definitely do business with them again.

Daven Naghen LLB

"Daven provided an excellent service, from attending the first interview with me to the final court appearance. He filled me full of confidence that he would defend me to which he did and come out with an excellent outcome in view of my position that I had put myself in."

Faye Blair LLB

Faye was excellent, sensitive and acted very well to the time constraints we faced. Great service and dealt with compassion at such sad times made the process less painful very professional.

Jamie Dobbs GCILEx

Over the last forty years I have cause to deal with many law firms both in a personal and professional capacity, including some ‘top’ London Companies. In all of those dealings I have never found anyone as proactive and so willing to offer help and advice as Jamie Dobbs. During the last two years Jamie guided my parents through the completion of Lasting Powers of Attorney. Helped myself with the use of the LPA and recently dealing with Probate and Estate Administration following their death.

Mike Pepper MA

Mike Pepper gave us excellent advice. He was always most helpful and accommodating giving lucid explanations every step of the way. Thank you Mike.

Donna Sandison FCILEx

Donna has been helpful and professional every step of the way during the process. Always on hand to answer any queries and totally professional and friendly at all times.