Australian money, AUD calculator, and notebook, copy space background

Make it hard for your customers to owe you money

Our previous blog focused on the importance of obtaining complete details for your customers so that you know exactly who it is that you are doing business with.

This blog will focus on what you should do once you have all of those details.

Many businesses, particularly those that are struggling with cash flow, overlook some of the simplest debt prevention tools.   One of the easiest ways to immediately improve cash flow is to design (or simply decide upon), implement and routinely use good billing practices.

Most modern financial management software packages, make it easy to issue invoices quickly and to deliver those invoices via multiple delivery methods.

Invoicing customers on a frequent basis for relatively small sums will encourage customers to pay and pay sooner. This approach also helps to identify slow payers and/or argumentative debtors.

An effective billing practice should not only include invoicing frequently, but also proactively following up invoices which are not paid within your standard terms of payment. That could be via automated follows through your financial management software or standardised emails that can be easily developed.

Businesses should not be shy about chasing up debtors. Those debtors have had the benefit of goods and/or services on credit and there is no reason why their businesses should continue to be funded by you once your invoices have gone outside of your trading terms.

The other matter that is regularly overlooked by businesses is making sure that it is easy for debtors to pay you.  This means having plenty of payment options and making sure that your customers know about them – payment options should feature prominently on your invoices. With so many cheap payment options available in this day and age you should not limit the ways in which you can be paid.

If it is hard for your debtors to pay you, then don’t be surprised if you have a problem with bad debts.

Finally, don’t be scared to ask for a deposit, particularly if you are outlaying costs in connection with the goods and/or services that you are about to provide on credit. We recommend that the deposit taken should cover at least your costs of production.

Coleman Greig specialises in providing clarity and confidence to business operators in their legal relationships.  If you have a query relating to any of the information in this piece, or you would like to speak with a lawyer in Coleman Greig’s CGCollect Debt Recovery team, please don’t hesitate to get in touch today.

Share:

Send an enquiry

Any personal information you provide is collected pursuant to our Privacy Policy.

Categories
Archives
Author

More posts

A guide to intrafamily adoption

Adoption is the process where a parent’s legal rights for their child are transferred to another person. The formal adoption of a stepchild or close relative is known as intrafamily adoption.

Passenger movement and visa data-matching by the ATO

Heading overseas for work or a holiday? Taxation issues, including tax residency, should be on front of mind when departing from or arriving to Australia. Why? Because the Australian Taxation Office (ATO) can follow your footprints and, if you’re not careful, spring unexpected taxes on you.

Is it really necessary for my executor to have so many powers?

People often question why the executor of their estate needs to have so many powers. Simply put – if your executor isn’t given any additional powers by your Will, then they are limited to what is set out in the Trustee Act. One area that this can lead to issues in, is the family home – particularly if beneficiaries aren’t in agreement.

Essential terms of a commercial lease

A commercial lease is a contract that details the rights and obligations of a tenant and landlord. So, what are the necessary terms of a commercial lease?

Responding to data breaches

In the final part of our four-part series on your business’ responsibilities related to cyber attacks and data breaches, Special Counsel John Bennett how businesses should respond to data breaches, including application and requirements of the Notifiable Data Breaches Scheme.

Security of personal information

Part 3 of a four-part series on your business’ responsibilities related to cyber attacks and data breaches where Special Counsel, John Bennett provides an overview of some court decisions and proceedings where ‘security’ of personal information has come into issue.

Parental alienation in Family Law

The concept, Parental Alienation Syndrome, was initially brought about by American psychiatrist Richard Gardner in 1985. The term parental alienation is used to describe a situation where one parent is involved in psychologically manipulating their child to turn against the other parent.

Are you liable for labour hire workers if they are injured?

Many employers (host employers) engage employees of labour hire companies, particularly in the building and construction, hospitality and manufacturing industries. However, what happens when one of these employees gets injured at the host employer’s work site? Who is liable for the injuries?

The risks with cyber attacks and data breaches

Part 1 of a four-part series on your business’ responsibilities related to cyber attacks and data breaches. Cyber attacks and data breaches are the top business risk in Australia according to Aon’s 2023 Global Risk Management Survey.

© 2024 Coleman Greig Lawyers  |  Sitemap  |  Liability limited by a scheme approved under Professional Standards Legislation. ABN 73 125 176 230