Troubleshooting

If slow payers and bad debts are a problem for a business, the whole order acceptance, invoicing and credit control operation needs to be assessed and, possibly, overhauled. Each of the following stages in the cycle needs to be critically evaluated.

• Negotiation/Quotation/Order
• Credit referencing
• Risk reduction
• Order acceptance or rejection
• Invoicing
• Collection timetable
• Reminder letter programme
• Telephone techniques
• Third-party enforcement
• Stopping supplies
• Targets and priorities
• Measurement of results

This troubleshooting exercise can be carried out in-house - resources permitting - but independent assessment and advice is likely to be more objective and productive.