Focusing on debt payment during the festive period
The Christmas and New Year period can often be a critical time for business owners, with many of them no doubt trying their best to encourage some of those problem debtors to pay and hopefully reduce their debtor days to an acceptable level.
Many businesses will effectively shut down from 20th December and as a result, payments often won’t get made, cheques don’t get signed and businesses can experience real problems with cashflow at this time and owners can understandably, therefore, find it hard to tide the business over until work starts again. Add to this the current uncertainty surrounding both the political situation and the issue of Brexit, and it becomes clear why it’s vital that business owners pull out all the stops over the next few days to ensure they get paid.
Tips for getting payments made
While we all know that there is often a tendency to take your foot off the gas during the festive period, you don’t want to be left with a headache when the New Year arrives. And making even a few, small changes to credit control procedures at this time of year can mean you gain an advantage over your competitors.
Business owners should consider sending gentle reminders or making polite telephone calls at the earliest opportunity to let your debtors know the expected payment date, as this can really help to keep customers focused on what’s required of them.
You should also ensure that customers have their invoices as soon as possible, which helps to avoid delays when payment is due and also means that their debtor days do not increase.
How do you compare?
Why not take stock of how your business performed last financial year and compare your debtor days with those of your industry standards by using our DSO comparison tool.
If recovery is still an issue for your business, our Debt Recovery Team can play a vital part in easing any concerns that you may have. The service provided is swift, professional and – most importantly – cost-effective.