The 4 Best Strategies to Help Your Business Survive Til 25
The latest data out from Equifax (Our credit reporting partners) is sobering news for business owners; business insolvencies are through the roof. The term “Survive til 25” has been coined to reflect the tough global economic conditions that businesses are currently facing and suggests we may have a few more months of hard road ahead.
Well, we don’t just want our clients to survive, we want them to thrive, so here are the four best strategies to help your business do just that.
1. Have the right commercial terms of trade in place
- Make sure every new client has read and accepted your terms of trade.
- Make sure your terms of trade sets out roles, responsibilities and expectations including passing on recovery costs and undertaking credit checks.
- Make sure your terms of trade are updated to reflect changes in legislation and are appropriate for your business type.
- Standardise your onboarding process to minimise the risk of new clients falling through the cracks.
- We offer a range of terms of trade products to suit businesses in all industries.
- Our business support specialists can draft the ideal contract for your business.
2. Credit check all new clients
- A simple credit check at onboarding time may help you to avoid a serial defaulter.
- We make the process easy with online credit reports that take just a few minutes to assess and rate your customers credit scores.
3. Stay on top of your late payers
- Don’t leave overdue debts ignored, as the saying goes “The squeaky wheel gets the grease” the same is true for noisy creditors getting paid.
- Use the tools built into your accounting software (like Xero and MYOB) with automated overdue invoice reminders.
- Call customers and find out why they have not paid, ask for some payment commitment, and follow up if they do not follow through.
- Offer different ways to pay to make it easier for them such as taking EFTPOS, credit card or Pay Pal.
- For larger amounts, consider breaking it up and taking payments if it means the difference of getting paid or not.
4. Use a professional debt collection agency
- Don’t delay in passing your aged debtors to a debt collection agency, we recommend no more than 90 days overdue.
- It’s easy to sign up online with us and takes less than two minutes. If you are a Xero customer, you can sign up with your Xero credentials.
- Loading your overdue invoices is as easy as ticking a box and we can pull the invoice data direct from Xero or MYOB.
- Often contact from a professional debt collection agency like us is all that is needed to get paid.
- We’ll work with your customers to achieve the best resolution and get you paid.
- Our resolution-based approach helps to keep your customer relationships intact.
Register your business with us
- It’s free to register your business
- It only take 2 minutes online
- Just click the button below and follow the prompts
- Once you are registered you will be able to load your overdue debtors to us for resolution
Get more information
Our friendly Customer Service team are available to talk through these strategies with you and help your business survive til 25!
Call us today at 1300 361 070 or fill in the form below and we will be in touch as soon as possible.
About EC Credit Control
We are a full service credit management agency that has been supporting Australian businesses for over 30 years. As a specialist in debt resolution and developing business terms and conditions of trade, we have the tools and expertise to help minimise the risk to any business that offers credit. For a free no-obligation consultation, get in touch with your local Business Support Specialist.