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Debt

RecoveryBusiness or individual often hire a third party to

collect bad debts.

Legal Disclaimer

You should not act or rely upon any of the

information contained within this seminar

without looking the advice of a qualified

specialist who has practical experience in the

specific range of skill and locale that you

require.

Introduction

Inefficient debt recovery procedure will result in a lot of time and effort wasted, which leads drives straight forwardly to a misfortune in efficiency and poor income.

The long-term effects of continuously chasing bad debts could likewise bring about your business being compelled to close its entryways.

To help you avoid this, we’ve put together the following 10 tips to enhance your debt recovery processes.

The most effective method to Avoid Bad Debts: Tips from

a Debt Collection Expert.

Our task at Debt Recoveries Dubai is to collect debts. However, as we come into contact with a credit departments and accounts receivable framework and procedures, we also get to see how debts come about in the first place and how they can be avoided.

Wouldn’t it be great to keep all that bad debt from occurring in the any case? What tools should you put in place at the start to limit outstanding debts?

We coach many customers on debt prevention strategies, so I thought I might share some of these avoidance tips with you.

Select Your Clients Carefully I know this sounds obvious, however when I initially began in

business, I took any customer I could get keeping in mind the end

goal to win organization, imaginary that a busy office would mean

achievement and huge profits. Off-base! It led to low morale, low

customer satisfaction and low profits, since I was not picking and

choosing the clients that I wanted to work with. I learnt I am more

relaxed service a specific customer and so I now stay within our

niche customer base and we don’t stray from that.

So you need to pick your customer carefully. Work with your

business division to create an ultimate profile of the perfect client

for you and then only take on those clients you want to work with.

Once you have chosen your client, conduct credit reports/searches

on the organization and the director. Check their sites, social media

sites. Ring their clients and ask them about your potential clients.

Look for warning in their finance department you can learn about

their financial health before you do business with them.

Gain Tighter Power

Once you have chosen the correct customer and you are

content with the credit checks and financial status, you now

need to set up tight credit controls. Tight credit control is your

first line of defense to avoid bad debt. It’s the most way to

avoid or limit your exposure to bad debts by a couple of basic

steps:

Complete exhaustive business and reference checks (if not

done so already) before you offer credit to new customers.

Get them to agree to individual certifications and sign credit

application forms ( see this connection on our website for a

free credit application layout).

Make sure you have credit control documents.

Set reasonable but reasonable credit limits.

Cash Upfront

In my view, by asking for cash up front, you

are transfer a strong letter to your client that

you are serious about your services and

serious about fee.

Consider adjusting your system to fit in with

this: for example, following up as soon as you

realize your payment has been missed out –

or calling in advance to guarantee that a

cheque will be issued.

Set Your Payment Terms and Penalties

See our website link for terms and penalty fee template: Your terms of trade will only be enforceable if you ensure clients sign their acceptance before you extend them any credit.

Make sure your terms of trade specify when you will start to charge interest on overdue amounts and the rate of interest you will be charging.

How do they hope to get paid? You must set clear and obvious payments terms and make ensure they are set out and clarified in plain English.

It’s amazing how many organization I have gone over that have no payment terms at all and no punishment charges.

CONTACT US

inquiry@dubaidebtrecovery.com

00971-50-5071820