Post on 18-Dec-2015
transcript
Growing your business…
debt recovery & credit control lawyers, scotlandYUILL & KYLE
YUILL&KYLEYUILL&KYLE
www.debtscotland.com scowan@yuill-kyle.co.uk
YUILL & KYLE debt recovery & credit control lawyers, scotlandA presentation by
by improved cash flow…
STEPHEN COWAN, Managing Partner of Yuill & Kyle and ‘The Forum of Private Business Advisor for Commercial Debt and the Courts’
The most basic concept in business
A sale is not a sale until it’s paid for!
debt recovery & credit control lawyers, scotlandYUILL & KYLE
YUILL&KYLEYUILL&KYLE
www.debtscotland.com scowan@yuill-kyle.co.uk
What will we cover?
Why should you manage your credit risk?
Why should you credit check your customers?
How do you credit check customers
If all else fails what should you do?
Some cash collection techniques
debt recovery & credit control lawyers, scotlandYUILL & KYLE
YUILL&KYLEYUILL&KYLE
www.debtscotland.com scowan@yuill-kyle.co.uk
debt recovery & credit control lawyers, scotlandYUILL & KYLE
YUILL&KYLEYUILL&KYLE
www.debtscotland.com scowan@yuill-kyle.co.uk
Why should you manage your credit risk?
Commercial:
Financial:
future sales are more reliable
profits are increased by fewer bad debts and lower borrowings
debt recovery & credit control lawyers, scotlandYUILL & KYLE
YUILL&KYLEYUILL&KYLE
www.debtscotland.com scowan@yuill-kyle.co.uk
Why should you credit check your customers?
If you knew a customer were going bust would you give 30 days credit
If you knew your customer paid very late would you expect payment on time?
If other suppliers know your customers they will be pressing harder for payment
Get ahead of the queue
How do you credit check customers?some useful tips
Status reports from credit agencies These will give you:
Full customer detailsFinancial resultsPayment experience of other suppliersRegistered judgmentsRegistered lendingRecommended credit rating
debt recovery & credit control lawyers, scotlandYUILL & KYLE
YUILL&KYLEYUILL&KYLE
www.debtscotland.com scowan@yuill-kyle.co.uk
How do you credit check customers?some useful tips
debt recovery & credit control lawyers, scotlandYUILL & KYLE
YUILL&KYLEYUILL&KYLE
www.debtscotland.com scowan@yuill-kyle.co.uk
How can reports be delivered?
www.ykcreditcheck.co.uk
How do you credit check customers?Bank references
Account Opening Application
Trade reference
All available www.debtscotland.com
some useful tips
debt recovery & credit control lawyers, scotlandYUILL & KYLE
YUILL&KYLEYUILL&KYLE
www.debtscotland.com scowan@yuill-kyle.co.uk
How do you credit check customers?
Bank references
some useful tips
debt recovery & credit control lawyers, scotlandYUILL & KYLE
YUILL&KYLEYUILL&KYLE
www.debtscotland.com scowan@yuill-kyle.co.uk
A bank reference is only an opinion and will not guarantee payment as it is based on the bank’s review of their customer’s account performance
Details of a bank’s replies are as follows:
How do you credit check customers?
debt recovery & credit control lawyers, scotlandYUILL & KYLE
YUILL&KYLEYUILL&KYLE
www.debtscotland.com scowan@yuill-kyle.co.uk
Bank Reply Meaning
Undoubted More or less what it says - certainly the best reference given
Respectable, considered good for your enquiry Probably the most usual good reference
Private limited company considered good for your figure and purpose
Much the same as the above, with the added confirmation of limited company status
Respectable but unable to speak for your figure Guarded, and the enquirer should be wary
Unable to speak for your enquiry A bad reference: trade & cash only basis
Figures higher than we expect to see Best to proceed with further security
Trade references
How do you credit check customers?some useful tips
debt recovery & credit control lawyers, scotlandYUILL & KYLE
YUILL&KYLEYUILL&KYLE
www.debtscotland.com scowan@yuill-kyle.co.uk
What you are attempting to do is to ascertain objective third party criteria as to your customer’s worth
Will a prospective customer provide a trade reference which is unsympathetic
You should bear this in mind
How do you credit check customers?
Account opening application
some useful tips
debt recovery & credit control lawyers, scotlandYUILL & KYLE
YUILL&KYLEYUILL&KYLE
www.debtscotland.com scowan@yuill-kyle.co.uk
important information to obtain
All applicants Full customers trading nameTrading addressInvoice address (if different)Telephone NoFax NoEmail How long in businessAmount of credit requestedBanker's name and address / account no / sort code
How do you credit check customers?
Account opening application
some useful tips
debt recovery & credit control lawyers, scotlandYUILL & KYLE
YUILL&KYLEYUILL&KYLE
www.debtscotland.com scowan@yuill-kyle.co.uk
important information to obtain
Limited companiesLimited company nameRegistered officeCompany registration noDate incorporatedIssued paid up capitalUltimate holding companyDetails of directors
How do you credit check customers?
Account opening application
some useful tips
debt recovery & credit control lawyers, scotlandYUILL & KYLE
YUILL&KYLEYUILL&KYLE
www.debtscotland.com scowan@yuill-kyle.co.uk
important information to obtain
Sole tradersFull names and home addresses of proprietors
Some cash collection techniquesIdentify your major customers
Get to know them well
Set the correct level of credit
Monitor payment patterns
Use credit agency monitoring service
debt recovery & credit control lawyers, scotlandYUILL & KYLE
YUILL&KYLEYUILL&KYLE
www.debtscotland.com scowan@yuill-kyle.co.uk
Non-major accounts
Some cash collection techniques
Ensure you know who your customer is
Accurate completion of account opening application is essential
Set credit limits
Credit check
Use credit agency monitoring service
debt recovery & credit control lawyers, scotlandYUILL & KYLE
YUILL&KYLEYUILL&KYLE
www.debtscotland.com scowan@yuill-kyle.co.uk
Some cash collection techniques
Send out your invoices quickly
You can’t expect to get paid unless you ask
Ensure your invoice is accurate
Resolve your problems a.s.a.p
debt recovery & credit control lawyers, scotlandYUILL & KYLE
YUILL&KYLEYUILL&KYLE
www.debtscotland.com scowan@yuill-kyle.co.uk
Some cash collection techniques
Manage your “Aged Debt Analysis”
List accounts in order of size
Then by date
– largest first
debt recovery & credit control lawyers, scotlandYUILL & KYLE
YUILL&KYLEYUILL&KYLE
www.debtscotland.com scowan@yuill-kyle.co.uk
Some cash collection techniques
Chase your customers for payment
telephone
letter
fax
visit
stop list
debt recovery & credit control lawyers, scotlandYUILL & KYLE
YUILL&KYLEYUILL&KYLE
www.debtscotland.com scowan@yuill-kyle.co.uk
Some cash collection techniques
Ensure you have a collection cycle
Stick to it! Help yourself
debt recovery & credit control lawyers, scotlandYUILL & KYLE
YUILL&KYLEYUILL&KYLE
www.debtscotland.com scowan@yuill-kyle.co.uk
Some cash collection techniquesIf all else fails what should you do?
use third parties to recover your debts
collection agencies“no hay – no pay!”
debt recovery lawyerfees payable?
debt recovery & credit control lawyers, scotlandYUILL & KYLE
YUILL&KYLEYUILL&KYLE
www.debtscotland.com scowan@yuill-kyle.co.uk
Some cash collection techniques
What will a debt recovery lawyer do?
Choose specialist in this area
It could cost you nothing using correct technique!
Court action
Fast track collection
You can track what is happening:
debts over £1,500Statutory demand (bankruptcy)Statutory demand (limited company)
www.ykonline.co.uk
debt recovery & credit control lawyers, scotlandYUILL & KYLE
YUILL&KYLEYUILL&KYLE
www.debtscotland.com scowan@yuill-kyle.co.uk
Some cash collection techniques
debtors cannot escape Scot free!
debt recovery & credit control lawyers, scotlandYUILL & KYLE
YUILL&KYLEYUILL&KYLE
www.debtscotland.com scowan@yuill-kyle.co.uk
Have kilt, will harass: Miguel Garcia Jimenez
Growing your business…by improved cash flow…
debt recovery & credit control lawyers, scotlandYUILL & KYLE
YUILL&KYLEYUILL&KYLE
www.debtscotland.com scowan@yuill-kyle.co.uk
YUILL & KYLE debt recovery & credit control lawyers, scotlandA presentation by