Top B2B Debt Avoidance Tips Part 2

Have you missed Part 1 Read Here

These tips are based on many years experience of the debt recovery industry. Whilst we would not state that every insolvent company traded knowingly, we see many examples of fraudulent and insolvent behaviour where our client has no likelihood of retrieving their goods or money.

1. Invoice on time.

Don’t delay sending invoices as this effectively allows your customers further credit.

2. Don’t be afraid to say no.

If the debtor can not make payment on their account today by bank transfer (a direct payment that shows immediately in your account) then do not provide them with further goods.

3. Cash on delivery.

Cash means cash and not a cheque. If the debtor does not pay, your staff member should be instructed not to offload the goods. If the debtor cannot get cash, then his cheque is unlikely to clear also.

4. Watch for trading patterns.

Most customers will order in a pattern. If you have traded with your customer regularly over several months and their order increases dramatically, this is often a sign that the customer is insolvent and may want the goods to start a new company.  SGP often see large orders made within days of an insolvency application by the debtor. Beware, you are unlikely to retrieve your goods or obtain payment.

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