Bad debts can seriously damage your business or at worst lead to your company going into Insolvency. A £30k bad debt on a 30% margin means the necessity of an immediate new order for £100k and the cash flow to fund it and the time to receive it.
There are many ways to reduce bad debt, our marketing mentor Nigel Temple from The Marketing Compass, always talks about ” Awareness, Trust and Conversation” this works very well in reducing bad debt too.
Bad debt = being the nice guy, who is the last one to be paid, but eventually does not get paid.
Make your credit controller or whoever handles your collections, know with absolute certainty that you are not going to allow anyone to go over 60 days without an independent review and then it will have to be sanctioned.
Make sure this is something you actually do, if your credit department don’t believe this, it will not work. If a Director is approached direct, make sure he is trained in a response, there are plenty, all with a positive way forward.
Make sure your credit controller, educates your clients through conversation.
There is no reason why you should lose any business with some basic training, just improve your cashflow and profit.
To prove how successful an independent review can be, we will do it free for you.
No strings are attached to this offer, just pick up the phone.