Debt management in the New Year


It’s coming to the end of the second week of the New Year and we’re hopeful you’re still beaming with resolution pride raring to go into next week with the same positive attitude. But for those of you who might be feeling a little defeated, sluggish, or can already feel those resolutions slipping through your fingers, the Cash Protection Agency ltd (CPA) offer another pep talk to ensure you stay focused.

Last week CPA gave their words of wisdom on breaking bad bookkeeping habits in business based on over 24 years’ experience of debt collecting and credit control management. Director Denise Parkinson gave some great tips on how to increase the efficiency of a business through account management and cash flow and hopes to offer a boost of encouragement to back this up.

It’s all about the mind-set

“Be firm and do not be a pushover,” says Denise. “It’s those who shout the loudest who will be paid first. You don’t need to be heavy handed, just have good credit control procedures in place and backup in place in case things go wrong. When you threaten clients with further action, take it.”

You have a reputation to uphold so clients need to know you mean business. CPA reminds us that your debtors will try all kinds of tactics to avoid paying but that it’s not always because they don’t want to. Sometimes decent business people are left with no choice while they try to stay afloat and yours is most likely not the only company they owe money to – and some of their creditors will only receive part payment – so try not to take it personally.

Denise affirms that if you show willing to work with your clients in a way that will benefit the cash flow of both your business and theirs, your company is more likely to be one that your client cares most about paying.

In short, take a firm stance with your debtors so they know where they stand in the situation but also show you’re keen to come to an arrangement that suits you both – you’ll jump to the top of their priority list.

If company owners feel they have exhausted methods of dealing with debtors themselves and are feeling at a loss, Denise told us that CPA has clients who send in on average 200 debts a month and that they should not see it as a failure if they are not successful on their own. Send it to the experts, let them deal with it so you don't have to. They will have expertise to manage your debts.

The CPA team take debts personally at times, as if they are chasing their own money. If you need to speak to someone call 0116 268 8965 or email action@cashprotectionagency.co.uk


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