Growing your business… debt recovery & credit control lawyers, scotland YUILL & KYLE [email protected] YUILL & KYLE debt recovery

Growing your business…

debt recovery & credit control lawyers, scotlandYUILL & KYLE

YUILL&KYLEYUILL&KYLE

www.debtscotland.com [email protected]

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!




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







Why should you manage your credit risk?

Commercial:

Financial:

future sales are more reliable

profits are increased by fewer bad debts and lower borrowings




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








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




How do you credit check customers?

Bank references

some useful tips




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:





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





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


Account opening application

some useful tips




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



some useful tips





Limited companiesLimited company nameRegistered officeCompany registration noDate incorporatedIssued paid up capitalUltimate holding companyDetails of directors



some useful tips





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




Non-major accounts


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





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





Manage your “Aged Debt Analysis”

List accounts in order of size

Then by date

– largest first





Chase your customers for payment

telephone

letter

fax

email

visit

stop list





Ensure you have a collection cycle

Stick to it! Help yourself




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?





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





debtors cannot escape Scot free!




Have kilt, will harass: Miguel Garcia Jimenez

Growing your business…by improved cash flow…




YUILL & KYLE debt recovery & credit control lawyers, scotlandA presentation by

Documents

Growing your business… debt recovery & credit control lawyers, scotland YUILL & KYLE [email protected] YUILL & KYLE debt recovery