Business Ease

It is great making a sale.  It is great getting a new customer.  But really the sale has not been made until you have been paid.  Mostly, customers pay on time.  But there will always be a minority of customers that just do not want to take their commitments to you seriously.  So you go down a frustrating and sometimes expensive path of trying to recover your money.  But your success in getting your money can be defeated by what your people did when the wayward debtor first became a customer.

 

In my latest "interview with an expert" , I speak with an experienced debt recovery lawyer, Kristine Hopkins of Hopkins Lawyers in Melbourne.  You can listen to this podcast by going here:

 

She has some wise words to say about getting paid.  Here are some of the key points that she makes:

 

Get it right at the start.  It may seem simple, but it is very important - make sure you know who you are really dealing with.  Get accurate details of your customer.  This means accurate name and address details.  It means being clear about who your customer is - particularly if you are dealing with an entity such as a company or trust.

 

Know when is the best time to use a debt collector and when is the best time to use a debt recovery lawyer or attorney. Debt collectors have some advantages but also some significant disadvantages.  For example, if you really want to get serious about recovering the debt and instigate legal proceedings, you will need a lawyer.  Also a lawyer may be cheaper for large debts and using a lawyer can be a faster method of recovering your money.

 

Your contractual terms are critical.  On the back of many invoices you can often see thousands of words in very small print.  Have you ever read these terms?  Do you think that your customers ever read them?  Hardly anyone ever does.  If that is the case, are you sure that the contractual terms have practical (and perhaps legal) effect?  Having all those small words may make your lawyer feel good, but does it actually help you to get paid?  Wouldn't it be better to have your terms of sale clearly understood by your customer?  In practice you are more likely to get paid.

 

Wishing you easier business.

 

John Jeffreys