Businesses are being tested today like never before. The widely reported difficulties within the US sub-prime mortgage sector that has given rise to the potential ‘credit crunch’ and which has primarily been an ‘inter-bank’ issue may yet impact on the UK economy. Whilst the full extent of any impact is yet to be felt.

TIP 1 : KNOW YOUR CUSTOMER

Knowledge is power, as the phrase goes, so make sure you use it wisely.

• Check the exact name and legal status (you’ll need this if you ever have to take legal action to recover debt)
• Use headed paper to verify company details
• Make sure the order is from the same entity
• Use a reference agent to further verify details and check their credit status
• Ask for references from other suppliers and check them (and other suppliers) out.

TIP 2: AGREE PAYMENT TERMS BEFORE YOU SUPPLY

To assume is always dangerous, so be clear from the outset how you will conduct your business.

• Don’t assume you’ll be paid on 30 days or end of month following
• Set out payment terms in writing and try to get written acceptance
• Make sure customer’s order doesn’t suggest different terms
• Set our penalty (late payment charges and interest) if payment is late – you don’t have to invoke them but the right to do so is useful

TIP 3: INVOICE ACCURATELY, CLEARLY AND PROMPTLY

Attention to detail can make all the difference in getting paid on time.

• An invoice can’t be paid until it’s received.
• An invoice won’t be paid if the goods or services aren’t clearly specified.
• An invoice won’t be paid if the customer’s order number isn’t quoted.
• An invoice won’t be paid if it’s sent to the wrong address or has the wrong company name on it
• A disputed invoice won’t be paid.

TIP 4: DON’T BE AFRAID TO ASK FOR PAYMENT

The only good customer is paying customer, and if you don’t ask, you might not get.

• For large or important amounts – email us before the due date to make sure everything is OK
• Make immediate contact when payment hasn’t arrived
• Be assertive about what you expect and when you expect it
• Make the consequences of non-payment clear
• Follow up promises to make sure they’re met
• Do what you say you’re going to do when you said you

You can accomplish all of the above with Rapid-Billing. Signup for an account now and start getting paid quickly. Remember it’s free up to 5 customers and very affordable for more.

Tags: Billing System, billing system software, billing systems, Credit Management, Online Invoicing