Get paid before Christmas

With Christmas approaching fast, many companies leave it too late to collect their debts, experts are advising sole traders and companies to get in early and avoid the Christmas rush.

Looking ahead to the Christmas period there is always intense pressure for a company to collect in as much money and pay out as little as possible. There are often those that don’t chase their debt early enough and end up getting paid in January, says troubleshooter John Whiteman. This may cause your business a cashflow crisis.

Leaving it too late in the day could mean you don’t manage to have the festive time that working very hard through the year should bring.

Critical tips to getting paid before Christmas

1. Clients. Agree credit terms with your clients to structure you getting paid as quickly as possible.

2. Risk. Set a credit limit of an amount that you are willing to risk if your client does not pay. Minimise your exposure to bad debt.

3. Invoice. Invoice early and promptly before the month end. Leaving it to the end of the month causes delays

4. Telephone. 7 days before payment is due call to make sure that your invoice is going to be paid promptly.

5. Investigate. If your invoice does not get paid on time telephone to investigate why it has not been paid. Also send copies by email, fax and post.

6. Commitment. Get a commitment from them to pay. Write down notes of every contact with your client chasing invoices together with who you speak to. Ask for a date and payment by BACS, post dated cheques, can you collect funds?

7. Action. Telephone daily. Collect a cheque by hand. Keep pushing by being firm and to the point. People do not like hassle and these tips should get paid ahead of everyone else.

8. Learn. Try to learn and improve on this process.

9. Delegate If you are not a sole trader give someone in your company the dedicated task to get in as much money before the first week of December.

Useful links

John Whiteman