There are 8 important reasons why you should consider using the expertise that BizEnhanz has to offer:
Know Your Customer
Not all customers have an equal ability to pay invoices as they fall due. Some may be having short term cash flow problems, some may be experiencing deeper financial issues, and some may just be poor payers. But who are they? If you supply goods and/or services on credit you have to know the answer to this question or their financial problems just may become yours.
Terms of Trade
It is vital that you have appropriate terms of trade for your business and that you get your customers to sign these before you commence supply. If you don’t do either of these things you may find that the protections you thought you had at law are either non-existent or unenforceable. There is nothing worse than having no options available to you if a customer doesn’t pay you.
Correct Legal Entity
There are many different types of legal entity that you may need to deal with in the normal course of your business, from sole traders to partnerships to companies to trusts. If you haven’t correctly identified which type you are trading with prior to contracting then your terms of trade may be unenforceable. Do not underestimate this step, it is vitally important to get correct advice about the different types of entities before you commence your business relationship.
Depending upon your terms of trade and the form of the legal entity you are dealing with you will have different security options available to you. You need to understand what these options are, ideally before you start trading with the customer. If you are supplying goods on credit you should register on the Personal Property Securities Register. Regular reviews of the security you have also need to be conducted to ensure it continues to be appropriate for your exposure and customer risk level. Having security can be the difference between receiving full payment and having to write-off to bad debt.
Know Your Risk
Every credit customer of yours will have a different risk profile. This will determine how you should deal with your customer from trading terms, to exposure limits, to the level of security required. It is imperative that you conduct regular reviews of your customers risk profiles so you are in the best position to make these key business decisions.
Personal Property Securities Act
If you supply goods on credit you need to understand how this important piece of legislation applies to you and what you need to do in order to maintain your retention of title and other security rights.
Collecting overdue invoices need not be an onerous chore. Implement good internal processes and this unpleasant but vital business task will get easier.
Peace Of Mind
Putting all of the above together for you specific business will give you peace of mind that, at least from a credit perspective, you have done all that is possible to protect your cash flow with your customers. There is no better feeling than when one of your customers gets into financial difficulty and can’t pay you, you know you have prepared for this and have options. Don’t delay in giving yourself this peace of mind.
Order Your Peace of Mind
BizEnhanz is pleased to offer a free, no obligation 15 minute phone consultation to discuss any specific credit questions or issues that you may have.Talk to a Credit Expert today!