With the festive season well and truly here and the holiday wind-down beginning, we thought it was a good time to share our top tips for better payment practice as you make your plans for the new year ahead.
Our top 12 tips for better payment practice:
- Know your customer before they become your debtor.
- Review payment terms, penalties for late payment and indemnity clauses.
- Engage and communicate with your customers to avoid any issues arising.
- Consider different types of debtor, how to deal with them and the warning signs to look out for.
- Have strategies for dealing with common excuses or reasons for non-payment – Can’t pay or won’t pay?
- Do your homework – carry out credit checks, obtain trade references, use credit applications.
- Calculate your DSO for a reliable benchmark for your customer payment trends.
- CRIMES – Ask us about our six essential steps to consider pre-issue of claims to maximise your recoveries.
- Have a written Credit Policy, outlining your internal processes and procedures as well as escalation to DWF debt recovery solicitors.
- Use DWF legal debt recovery procedures and strategic enforcement of judgments to turn your outstanding invoices and paper judgments into cash.
- If you’re not instructing us already, consider the DWF Champion Challenge proposition to ensure you are receiving the best results from your suppliers.
- If you need advice or guidance about your credit policy and procedures, consider applying for a DWF Free Credit Health Check to receive our guidance on best practice.
And as for New Year’s Resolutions, here are our top three for successful debt recovery:
- Start using the DWF Extranet facility which enables you to manage the whole legal debt recovery process and instruct us online. You can view the complete case history, Court details and financials online and even listen to telephone call recordings.
- Arrange regular meetings with your DWF Relationship Manager to ensure you are receiving the best possible service, are aware of any service developments and to develop a close working relationship.
- Ask DWF to regularly review your Terms & Conditions of Business to ensure they are compliant, legally enforceable and provide you with the best payment terms, penalties for late payment, indemnities and offer you protection.
If you have any questions or would like more information, please contact one of our specialists below.This information is intended as a general discussion surrounding the topics covered and is for guidance purposes only. It does not constitute legal advice and should not be regarded as a substitute for taking legal advice. DWF is not responsible for any activity undertaken based on this information.