It’s the 20th of the month tomorrow. What’s your plan if your clients don’t pay?

It’s the 20th of the month tomorrow. What’s your plan if your clients don’t pay?

During lockdown some invoices may have been missed, or you might not have wanted to chase up an invoice because you weren’t sure someone would answer the phone. If you haven’t already begun chasing up late payments, now is when you need to be starting to push, and really drill down and understand why those invoices haven’t been paid.

Consider outsourcing the credit collection to an external specialist who is going to be chasing the clients at least weekly. Your number one priority now is to concentrate on growing your business, understanding the new environment. It might be that you outsource debt collection for 3-6 months or it might be that you outsource it permanently. Yes there is a cost, but the tradeoff is that it will reduce the likelihood of bad debts and should bring more cash into the business faster, and at the moment, everyone needs cash.

And if you’re struggling to pay any of your taxes at the moment, set in motion with IRD a payment arrangement in order to reduce penalty tax as it is the penalty costs that have a major impact on your debt. If you need any assistance please give Murray a call (09-309-3222).
Connect

Related Posts

Running a business without a business plan is like rock climbing blindfolded…

Running a business without a business plan is like rock climbing blindfolded…

Your chances of making it successfully to the top are slim and the process will surely be...

Are you working ‘on’ your business or ‘in’ your business?

Are you working ‘on’ your business or ‘in’ your business?

Are you trying to do everything by yourself? How much of what you do could be done...

Have you updated your business plan, taking into account the adjustment with COVID-19?

Have you updated your business plan, taking into account the adjustment with COVID-19?

Have you updated your business plan, taking into account the adjustment with COVID-19? While you might have...