FACTS: The best way to ensure that debts are paid on time is to develop and consistently apply a policy of credit control. This will ensure that you customers clearly understand your terms, and make sure they are enforced.

"When Commercial Credit
Control began working with
us, our debts over 60 days
were in excess of 300 000,
by carefully implementing
procedures this was quickly
reduced to 1500."

Case Study 2


Background

A client contacted us in November 2010 to discuss non-payment of invoices dated May 2010.

We did not hear from him again until March 2011, the invoices still not paid and now 10 months over due. We were requested to do what ever we had to, to recover the debt. If need be wind up the company.

Our client had attempted several times to get hold of the debtor thorough letters and telephone calls, to no avail.

Current situation

We began working on the account and within a week we spoke with the debtor. He had changed contact numbers and relocated to another part of the country. In communicating with the debtor we discovered that he had not traded for several months due to personal reasons. After a lengthy conversation he confirmed that the business was up and running again, and that he fully intended to pay off his debt.

He had lost everything and had been on benefits, he openly admitted he had several other debts and so it would be several months before the debt would be settled.

Conclusion

Over the following months we kept communication channels open with the debtor, following his progress of obtaining more contracts, how and when he would be paid.

In August 6 months later the debt was paid in full to my client who was extremely happy with the result obtained.

The working relationship has not been harmed between the businesses, if anything Commercial Credit Control restored a broken relationship and the parties continue to trade together.

At the outset our client wanted to close the debtors company and go after him personally. If he had gone this route he would never have been paid. By speaking to Commercial Credit Control our client allowed us to guide in the right direction giving the debtor all the options that were available and, thereby, gained a positive result.

  • Credit Control does not have to be aggressive.
  • There can be appropriate reasons for non-payment.
  • Employing a third party can defuse a sensitive situation.
  • A professional credit controller can allocate specific daily time to speaking to debtors.
  • Outsourcing can save money and offer qualified advice.