Many of your customers will be shutting down over the festive season for a period of up to 10 days, it’s important that you are ahead of the game and making calls now to ensure that you are going to be on their last payment run of the year.
Many companies will use this shutdown as a good excuse for not paying on time. Remember it is also year end for a large majority of businesses so they will be looking to hold onto as much cash as possible so that they have a healthy looking bank account for their financial reports.
However, it is your hard earned cash they are holding onto and it belongs in your account!
The first quarter of the year is often one of the hardest for many small businesses. December and January often have lower revenue due to holidays, but with rent and VAT returns coming, managing cash flow can be a juggling act. Many customers are going to hold off paying you for as long as they can.
It’s likely that some will prioritise payments for the suppliers that they need items from first, with remaining funds being drip fed out to those left. If you are not actively calling and chasing this debt then you will get left out in the cold. After all it’s only human nature that customers will not pay you until they are reminded.
Calling a customer to chase money can often be a difficult conversation and if you’re not careful you could easily upset them, so it's always best to be polite and professional and to remove the emotional side of things from the call.
Outsourcing gives you the option of using the service as and when the need arises, therefore it reduces the need of employing specialist staff who you may not have a full time position for. If you’re struggling with a late payment then don’t just give up and write it off. After all any loss for bad debts come straight off your bottom line!
If you would like further information or advice on managing your debtor books, or to know how My Credit Controllers can benefit your company cash flow please contact us.
How we can Help: