Keep a close eye on who owes you
In tough times, stay on top of your debts
Keep a close watch on your debtors ledger.
Prevention is better than cure
Don’t offer credit unless it’s absolutely necessary. If you do, make sure you check out new customers thoroughly:
- ask for references and get their permission to follow up
- request the business’s financial statements
- check public records for any legal judgements against them
- look up their website and read customer reviews online.
If issues arise
Keep detailed records of every follow-up – date, time, and what the customer promised.
When speaking with a customer, get a firm commitment, even if it’s to
pay in instalments, and get specific dates and amounts.
Remind them of their promises each time: “On [date], you said . . . On [another date], you said. . .”
If they still don’t pay, send a formal demand letter outlining the amount owed, a deadline for payment, and the consequences of not paying.
Depending on the amount owed, consider hiring a lawyer or a debt collection agency.
