Debt Recovery
It has been said that an organisation can operate for some time without making a profit, but not without cash flow.
Cash flow is the life blood of any organisation and critical for its survival.
Many organisations both large and small pay huge amounts of interest on external borrowings unnecessarily, because of its inadequate credit policies and controls, resulting in large amounts of working capital tied up in outstanding debts.
We all like to win new customers and secure additional work. But in the excitement of getting that new customer, do we consider the means and ability of that customer to pay us.
What information do you have about your customers. If you are supplying goods and services on credit, do you have a credit application form and if so is it adequate.
Do you have adequate and well documented terms and conditions of trading that your customers sign and agree to.
Do you have personal guarantees from the Directors of your corporate customers and do these guarantees provide you with sufficient protection.
Do you have appropriate systems in place to follow up the payment of outstanding accounts.
It is a well known fact that the older the debt, the harder it becomes to collect that debt.
There are many ways to improve the chances of getting paid.
Hynd & Co has a debt recovery section providing assistance in the following areas of credit management.
A feature of this service is a audit of existing documentation at no charge.
Contact David Fuller at Hynd & Co for further information.