Recovering debt

Most businesses will need to recover debt at some stage. Adopting credit control practices and a debt recovery procedure can help prevent debt and promptly collect outstanding payments. To minimise your risk of debt, it is a good idea to review the terms and conditions in your contract. A contract should specify what goods and services are being supplied, a time for payment and what happens if a payment is not made on time. The contract should also state your business’ process for faulty goods or services and the circumstances where the contract can be terminated. Before starting a relationship with new customers, perform a thorough background check before offering credit and clearly outline your terms of trade. It is good practice to only release goods when payment has cleared. There are many debt recovery methods for those collecting debt…