It is imperative that all of your customers are aware from the offset what credit will be extended as part of the payment process. Many people are paid monthly and would prefer to pay on this basis however you should consider those who may wish to pay on a weekly basis or indeed this option may be preferred for cash flow reasons.
Whichever payment cycle you put in place, it is important that your customers know when they should pay and you should have a process to manage this if they fail to do so. If a customer hasn’t paid on time you must notify them to give them an opportunity to pay and to highlight at what juncture their supply would be stopped. Whilst this situation is difficult it is important you handle it in a professional way to ensure you don’t accrue uncontrollable debts. See our Credit Control page for more information.
The NFRN Legal Expenses Insurance can cover lawyer’s fees to take action to recover money owed to you for goods and services you have provided, so long as you are owed more than £200. This is an insurance policy, so there are a few terms and conditions that apply.
You can call the Legal Helpline on freephone 0330 303 1457 for UK or 0044330 303 1457 for Republic of Ireland.