Print This Post Print This Post

Debtor Control in Bunbury

The Counterfeit Customer

When is a customer not a customer? Correct! When they don’t pay! And as I have been known to do, I am going to potentially pick another fight!

Firstly, if you have old debtors and plenty of them, I maintain this will be your fault, not theirs! Consider if you had $100 and you owed 15 people $10 each, who would you pay first?

Here are 6 debt management basics (that all happen to start with ‘C’) that are all within your control

  1. Communication – and lots of it, especially when the order is placed. Openly discuss your terms of payment and payment methods. Ask which payment method they will be using.
  2. COD – If they do not have credit facilities (completed and checked credit application) why extend credit?
  3. Complete the order – and do it exceptionally. Whatever it is you sell or supply do it so there can be little dispute that you didn’t deliver. This isn’t a bad repeat business strategy either!
  4. Check for satisfaction – After delivery, ask if they are delighted. Don’t assume that you got it right. Fix any concerns quickly
  5. Consistency – If your terms are 30 days, why wait 60 before sending a friendly reminder? Send it at 33 days with a date for payment within 3 more. No payment 4 days later? Pick up the phone, ask questions and note their answers.
  6. Consequence – there has to be some. If you have done everything above and there is still no money, then you have an obligation to take necessary (lawful) steps towards recovery

Your customers deserve your very best. You deserve payment from them for delivering your best. If either party is not getting their bit, then I contend that ‘business’ hasn’t really been conducted.

Yours in prosperity and fun

Jeff Austin

Business Coach, Bunbury WA
Be Sociable, Share!
Jeff Austin - Business Coach Bunbury

2 Responses to “Debtor Control in Bunbury”

  • Hi Jeff,
    that is exceptional!
    i like the neccessary (lawful) notation.
    the only thing that could be added is procedure (but it doesnt start with a “C”) – what are the steps, what is said, what documnetation needs to be provided ie payment plan – do they sign it and you give them a copy, what if they default? (it goes to debt collection thats what!)
    we will be in touch in regard to what we can offer in regard to this advice for your customers.and some possible link?

  • admin says:

    Hi Raquel
    Thank you for your kind comments and valuable advice. Yes – there is much more to it. All business ought to have a documented process they follow to ultimately minimise write-off’s.
    Look forward to getting more of your information and if you like, please post your articles on this site with reference back to BCA.

    Cheers
    Jeff

Leave a Reply