Don’t be a business casualty - find out how we can help secure your business.
An article released by National Business Review on Tuesday 14 March 2022 suggests that a wave of insolvencies is imminent.
With that news coming from a well-respected publication, it’s a good time to ensure your interests and assets are protected if the worst happens and your personal property is unsecured.
We can complete PPS registrations on your behalf. Find out more.
Prepare for rising interest rates
With the rise of the official cash rate and talk of further increases in interest rates, it’s never been a better time to look at ways you can not only bolster but protect your cash flow.
Set clear guidelines right from the beginning
Securing your cash flow starts with your paperwork (estimates, job order forms etc) are so important, as you need to set clear expectations with your customers right from the start.
Ensure you have robust Terms and Conditions of Trade. This documentation lists your payment terms, among other legalities clearly. What does this mean for you? You’ll have something to fall back on if payments are not being made.
It’s also crucial to ensure that things such as interest or late payment fees are defined so your customer knows this up-front.
It’s also vital to ensure that your Terms and Conditions of Trade are presented before your goods /services are supplied and are signed for the best protection.
Having professional documentation in place not only builds a strong customer relationship but also provides trust. If a customer is working through their own cash flow – they are more likely to pay someone they have a signed contract with than a business they do not).
We can help with your Terms and Conditions of Trade – ask us how.
Be timely and consistent with your invoicing
The recommendation here is to provide your invoice as soon as the goods or services have been completed. This aids in ensuring that invoices are sent and received. Again, like your initial estimate or contract at the beginning, ensure your payment terms are clearly stated.
Implement a follow-up process for your late payers
Another way to secure your cash flow is through the implementation of an ‘outstanding debt’ workflow. Keep in contact with your customer by communicating with them when a payment has not been made and go through a step-by-step process outlining what is next and what the repercussions are (as per your payment terms).
Your customer may be considering their own cash flow so it’s important not to think the worst, picking up the phone and sending friendly reminders is a good idea.
Look in to a resolution specialist
If you’re still not having any luck, we can help. Engaging in the services of a Debt Resolution agency like us takes the time and admin off your hands and on to a team of experts who have the experience to chase while maintaining the relationship with your customer.
It’s really easy to load your slow-paying invoices with us. Sign and load them in the following ways.
Load your slow-paying invoices during the month of March 2022 and you will go into the draw to win a Swann Security System to help protect your home or office. See all the details of this promotion here.
Stay informed to make better business decisions
Knowing a potential customers credit history is a helpful way to decide if you want to do business at all. We have partnered with the brilliant team at Equifax and can provide credit reporting to you so you can be better informed to make those key business decisions.
We are here to help
If you want to discuss how we can help to secure your cash flow we are only a phone call or email away. Our friendly customer service team have a wealth of knowledge.
Call us on 1300 361 070 or email: info@eccreditcontrol.com.au
Alternatively, we have a team of Area Managers in the regions to come and see you in person. You can see who covers your region here.
Acknowledgements: Thank you to the following websites and blogs for providing tips and tricks that helped formulate this blog: Creative Boom, SWRecovery, and American Express.
Thank you to National Business Review for the quote from Tony Maginness
