What if your customer is not doing well and he cannot pay his bill on time? Or what if your own company is struggling with debt? Two questions that highlight two sides of the same ‘coin’. Anyone can become a defaulter. How can you avoid that as much as possible?
Businesses and individuals alike were able to take advantage of deferred payments and other measures to keep the economy straight during the first corona wave. This has paid off: the number of companies at risk of capsizing was reduced from four to two in ten. But hose measures are not perpetual. For the time being, it remains guesswork about the size of unpaid invoices and potential losses and the number of so-called zombie companies. It is certain that these will be suspenseful times. Experts also fear that the new restrictive measures will fatal to failing companies.
The inevitable consequence is clear: unpaid invoices are becoming the order of the day and may not be a far-from-my-bed show for you either. But how do you reduce the risk of ending up in a negative vicious circle? How do you avoid falling victim to payment difficulties with your customer? Or vice versa, how do you ensure that your creditors give you the necessary breathing space until you recover?
Lesson 1 if you are dealing with unpaid invoices: keep in touch, keep pushing. In short, react quickly. Practice shows that creditors who stand firm are often paid first. Does your persistence pay off? Great: you’re done! If payment is not made, contact Go Solid in time to collect the uncontested invoices. Go Solid helps you to collect undisputed B2B invoices fast and free of charge. We ensure a professional and transparent follow-up from A to Z.
There are also other options for dealing with temporary payment problems. For example, your customer can request a postponement of payment. You are not legally obliged to grant that request, but if you have the financial flexibility yourself and take the situation of your customer into account, all parties may reap the benefits in the long term. Rather a payment plan than a customer disappearing from the radar along with a mountain of debt. If unpaid invoices or the loss of a customer (du to bankruptcy, for example) are the alternative, it’s worth putting the cards on the table.
Of course, a fully paid invoice is and remains the ultimate goal. You also achieve that goal if the invoice is paid in installments. Make a strict agreement about this and put them on paper to avoid discussions. You are free to charge interest for late payments as stated in your general terms and conditions.
So, keep checking whether you customer is properly adhering to the payment plan. If not, contact your customer immediately and don’t hesitate to take the next logical step. In the event of non-payment, the financial health of your business can be at stake. Call on Go Solid to collect unpaid and undisputed B2B invoices faster and cheaper.