Bad debts are known and notorious in debtor management land. Dubious means doubtful and that is exactly the feeling we get with them. These are customers who have bought on account and for whom it is not yet certain whether they will ever pay their invoice. This often concerns invoices that have been open for a while. And in general, the longer an invoice is open, the less likely it will be paid.
How do I deal with doubtful debtors?
When it comes to debtor management, the following always applies: prevention is better than cure. And that certainly applies to doubtful debtors. You don’t want that. There are several things you can do to prevent them:
Request a credit report
Request a credit reportbefore working with companies. This way you can estimate the risks of any default in advance.
Make clear agreements in advance
Discuss with your customer what the payment term is that you use or inquire whether he or she thinks you can meet it. This is how things have been brought to the attention anyway.
Invoice as soon as possible
After you have delivered your product and/or service, you immediately send your debtor an invoice. Did you know that the invoice can also contribute to faster payment? In any case, include the following:
- Description of the delivered product/service
- The total amount of money
- A date on which payment must be made
- How the payment should be made (including the necessary information, such as the account number)
- In addition, make sure you have a good design
Has the payment term expired and you have not yet received money? Send a reminder immediately.