New Year’s Business Resolution…. Always Keep an Eye on my Exposure and Risk !
The New Year is always full of promise. The challenge is whether we can continue to stick to our well intentioned promises.
We often make promises to alter ourselves, our lifestyles, our environment but how often do we promise to alter the way we look at our business
Sadly running a successful business can be a drain on your time. Often the clamour to service clients and fulfil orders takes over the opportunity to really look at your business. Including analysing your exposure and your risk.
We all know that there is ‘no better time to start something new than the present’ but the New Year also brings us a ready-made opportunity for change.
Take a little time during the holiday period to study or analyse your customers payment habits. Is there a particular customer who has taken longer and longer to pay ?
If so, make a note on your accounts system to flag them up as a concern. Then make them your priority when you’re conducting your credit control, contact them first. The quicker you action a concern, the speedier you are to get paid.
Is there a particular customer who has consistently ordered more goods than your suggested credit limit ? Now is the time to conduct some credit and diligence checks on that customer. Make sure that they are worthy of the extended credit limit that you are giving them ?
If they are, then write to them to extend their credit limit. Your customer will appreciate the vote of confidence and may even provide further orders. If they are not worthy of additional credit, flag them up on your system and every time they go past their limit, contact them immediately and ask them for payment to bring them back in line.
New year is the time for new starts and new beginnings, so let’s all start putting best practice into our businesses.
If we can be of help with recovering outstanding debts or remove the time you spend chasing payment by taking on your credit control please get in touch>>>
Happy New Year !