Having overdue accounts is far from a desirable situation, especially when considering the kind of efforts involved in marketing and selling goods or services to customers. A business person would rather invest valuable time and resources in developing beneficial relationships. To avoid any overdue accounts and related debt problems are elucidated below. If carefully exercised, they will certainly prevent the overdue accounts issue amplifying to a unmanageable level.
Planning and Implementing a Good Credit Policy
A safe credit policy, can ensure minimal overdue account entries, and can be carefully charted. What also can be covered should include, payment acceptance, and the maximum credit limits allowed (check those with a bad credit history), advance policy, payment instalment details, customer classification in different credit slabs, etc. Debt problems arising from overdue accounts, would substantially settle, if these stated factors were carefully predefined.
Planning and Implementing a Credit – Collection Policy
Typically, business groups and business individuals, spend large funds and plan resources towards developing and promoting services or goods. What is ignored however, is the business continuity aspect, especially in reference to the cash flow and overdue accounts. Overdue accounts as a part of a complete debt problem, are often not quantified or provided for. The first step towards managing overdue accounts begins by conferring due attention to the accounts overdue in the planning exercise.
Damage Control Exercise
If the overdue account is already inflated and there is not much that can be achieved by exercising a credit policy, here are few tips to deal with the problem:
- Cross-checking and preparing all accounts to have a separate list of repetitive overdue accounts and the recent ones, with not much of a pattern. The latter ones – accounts that usually pay on time deserve immediate attention.
- Stay in touch with those, who at the customer’s end, would actually be responsible for releasing payments. Extensive follow-up could also be a good answer.
- If these or any other measures attempted by you to clear the overdue accounts do not work, hire a credible and licensed UK collection agency. These collection agencies, operate as per rules marked by UK legal framework and thus incorporate all means like skip tracing to help you come out of any overdue accounts related debt problems.
Overdue Accounts by Mike Kelley
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