#Collecting unpaid invoices training full#

The more specific your terms are, the less misunderstandings you’ll have later on should there be an issue with payment.Ī watertight template that sets out credit account terms and conditions is a good starting point if you haven’t formalised credit terms in the past. Specifics on credit limits and the ability to cancel any agreement should also be included.

Q: What kind of “terms and conditions” should I have for trade credit?Ī: Terms and conditions must cover issues such as trade credit, specifically covering issues around invoices, payments and debt collection.

All debt collection fees incurred by hiring a third party will be paid by the customer.

By having a clear set of terms and conditions, you and your customer understand their rights and obligations. When your business offers credit for the payment of goods or services, you’ll need to have a robust set of terms and conditions to be protected should payment drag out. An invoice that accepts online payment will often be prioritised above one that won’t. Customers are often low on actual cash, and/or find electronic payment a lot easier. with a payment system such as PayPal and Stripe.

Try to accept credit card payments, i.e.

state something like “We’ve banked with Kiwibank since 2009” to convey a local presence and goodwill).

Always make your bank details clear, naming the bank you’re with for added trust (i.e.

Always accept cheques (a surprising amount of companies only pay by cheque), even if it’s a nuisance to process and bank.

To ensure steady cashflows, we recommend having multiple payment options available on the invoice:

#Collecting unpaid invoices training full#

You can suggest a payment plan (see more below) if full payment is no longer an option. If you don’t get paid on time, then your customer is already on the back foot and you’re well within your rights to passively chase it from day 1. If a payment is going to be late, make it clear you need to be notified. Use big letters and numbers, with sections like “PAYMENT DUE 30 DAYS FROM INVOICE DATE” and “LATE PAYMENT TO BE PRE-ADVISED”. Look at their Facebook page - are there complaints? What is the review rating? Does the page speak to its customers, and what date was it established? Is it regularly updated?ĭon’t refrain from telling customers when your money is due.Their work history is the most important. Do a Linkedin search – check out the person on Linkedin. You’ll need to be a member to see information so it’s worth joining.If not, search for 'business name + complaints' to see if anything comes up. You may see reviews (marked by the a range of gold stars) and if you do it’s worth reading them. Look for customer complaints – a quick Google search of the business name should bring up its address and a Google Business listing.A company search gives you a starting point for deciding on whether to take on the customer. If then you see “in administration” or “in liquidation” on related entities this may be a red flag and may suggest the company you're dealing with is related. You can also see what other companies the directors are involved with. Check the Companies Office Registrar to find out when the company was registered and who owns it – a simple search of the company will reveal when it was registered, where it’s based, who the directors are and who the ultimate owner is.Ask your team or other people in the industry you know: does anyone have any experience with this customer?.If you are concerned about a chargeback, our chargebacks guide has you covered.Īsking locally and following these basic steps will help create a better picture of the customer you plan to take on. If you need guidance on cross-border debtor collection and/or customer disputes with regards to goods or services supplied, this guide is not for you. If you have any tips you would like us to include, please contact us via email - we'd love to hear from you. Prompted by the popularity of an opinion piece in TheSpinoff in early 2018 and subsequent debtor horror stories nationwide, we have put together an all-inclusive guide to minimise late payments and maximise cash collection for any small to medium-sized business.

Whether you're a small business or a big one, debtor collection is the same - people who are late on their bills are most likely to be disagreeable. To provide the best chance of collecting money owed to you as fast as possible, our guide includes must-know steps to secure your money. Our scripts and guidelines make debtor management easier and more efficient so you can focus on your business. Overdue invoices are stressful and time-wasting.