While most of 2020 has been difficult for many businesses, Christmas is always the most challenging time to collect payments and maintain steady cash flow.
Many people won’t be available as they take days off, and regular financial processes are disrupted by national holiday dates.
Unless you are proactive in getting on top of your credit control process and communicating with your debtors, you could find your outstanding invoices falling to the bottom of their priorities – putting you back to square one on getting paid.
So, what can you do to avoid your invoices getting lost in the Christmas shuffle, and the associated detrimental knock on effects to your business?
Make contact early and often
It’s always a good idea to maintain an open line of communication with your clients, as it makes it a lot more straightforward to remind them about payments due.
Once you’ve delivered a service or product and made a request for payment, you’ll need to follow up promptly, especially considering the Christmas holidays coming up imminently.
In the lead up to Christmas, it’s fair to assume there will be some disruption as team numbers are reduced and regular payment days shift around due to key holiday dates.
It’s wise to bring this up with your clients and to suggest alternative dates or processes to get payments made early to sidestep any potential disruption for mutual benefit.
Instruct a Debt Collection Agency sooner rather than later
Chasing debtors for overdue payments is even more disruptive to your business than usual leading up to Christmas, as you may have staff on annual leave or offices closed entirely.
By quickly passing any outstanding debts to a debt collection agency like DCBL, you show your debtors that the matter is not being taken lightly and gives them that extra push to encourage them to pay up.
Our professional, ethical approach gets great results whilst protecting your client relationship.
We are also much faster to act than court proceedings – Find out more about our pre-court Debt Recovery service.