COVID-19 wreaking havoc on your cashflow? Tips to get paid.

It’s hard enough in business at the best of times.  When you don’t get paid, things just get worse.

Now more than ever, cash flow is important to the survival of your business.  Fortunately, there are some very simple and effective things you can do to increase your chances of getting paid.

  1. Ensure your Terms and Conditions are up to date (and enforceable)

The first step towards ensuring you get paid for the work you do is a strong and effective set of terms and conditions.  It doesn’t matter if you are selling goods or services (or both) ­ a document that clearly sets out the obligations of both you and your customer is the best place to start.

Your Terms and Conditions should clearly set out what you are providing, and what you will to be paid, as well as when payment is required.  They should also set out your obligations, and the limits on what you will do and be liable for, as they will for your customer.

  1. Have processes in place to quickly recognise non-payment

The second step is to have a clear process internally to make sure that as soon as any issue arises, it is dealt with efficiently and clearly.  Think carefully but always respond and confirm responses in writing.  If you are unsure about any aspect of how you should respond, call us.  If the question is short and can be dealt with over the phone, you won’t get a bill!  Its part of our value add.  It will also mean that you don’t inadvertently trap yourself.

If payment isn’t resolved quickly, don’t delay.  Be proactive.

  1. Recognise that there’s not a one size fits all solution

The legal options for getting paid are many and varied.  There is no “one size fits all”.  You will always need something that is tailored to your issue.  The best approach is to assess and then devise the approach that will see you recover as quickly and cost effectively as possible.

That does not mean a simplistic “debt collection” that just follows one process and hopes for the best but rather, a considered strategy that has the best chance of success.  It might mean picking up the phone and negotiating an outcome with your customer.

 

Its about the result, not the process.  And we’re here to help you, every step of the way.