Augusta
VIP Contributor
Running a business especially a big one comes with selling on credit too. This is why it is pertinent to adopt some measures right from outset to militate against incessant credit owings. So how can you protect your business from bad debt from the outset.
Have an efficient account administrator
You would need to have a specific person that will be efficient and organised to administer the credit giving process to have a smoother operations.
Create good relationship with customers
Try to build a good relationship with your customers to foster familarity to bring swifter payments.
Regular follow-up of debtors
Right from the start try to follow up l
unpaid debts at regular intervals. it is good to call up debtors periodically to remind them if their payments.
Document all details of debt
Every conversations should be documented like writing down any a payment dates that was agreed upon. Document all payment plans and it's execution.
Involved a lawyer
one of the things to do when credit sales is to involve a lawyer from the outset. The solicitor will have to draft a etter stating that legal action will be taken if no payment is made.
Have an efficient account administrator
You would need to have a specific person that will be efficient and organised to administer the credit giving process to have a smoother operations.
Create good relationship with customers
Try to build a good relationship with your customers to foster familarity to bring swifter payments.
Regular follow-up of debtors
Right from the start try to follow up l
unpaid debts at regular intervals. it is good to call up debtors periodically to remind them if their payments.
Document all details of debt
Every conversations should be documented like writing down any a payment dates that was agreed upon. Document all payment plans and it's execution.
Involved a lawyer
one of the things to do when credit sales is to involve a lawyer from the outset. The solicitor will have to draft a etter stating that legal action will be taken if no payment is made.