Tips To Avoid Non-payment

1 part of the series: background and basics just small and medium-sized enterprises (SMEs) suffer disproportionately frequently and heavily the consequences of payment and bad debt losses. SMEs are particularly affected in the areas of construction, craft and general services. Are many reasons for the failure to pay, but you can make a simple classification based on the customers. For business customers (B2B), especially short-term liquidity problems and pending claims to own customers are responsible that invoices are not paid. Worsened their situation is often too little equity capital reserves. This noticeable, particularly at times of low order access because they severely limit the economic scope. Especially over-indebtedness and unemployment are responsible for unpaid invoices for private customers (B2C).

Often also a short-term liquidity squeeze can lead to the deterioration of the payment, however, it is especially in the B2C area also, a considerable number of debtors who deliberately waive the payment of invoices. Especially for SMEs, it can be crucial for economic survival constantly to have the payment behaviour of their customers. So debt avoids beforehand or at least risk to minimize the risk of their occurrence. Tip: create solid basis of the business relationship, you meet the customers. Advance, first of all, it must be clarified whether the customer is an individual or a company. Details of the full name, marital status and legal capacity must be obtained in the case of private customers. The customer is a company, so cleared in advance, must already be whether it is a sole proprietor or a legal person. As also in the case of individuals, it is important to know the precise and official company name.

The client is a legal entity, it is also important to know which form of society. Furthermore, it is to determine whether any conversation or contracting party actually has the appropriate power to act, to be able to enter into a business relationship and who is the legal representative of the company. To claim that it doesn’t matter whether it is a B2C or B2B customers, later the payment without too much problems is strictly to ensure that the customer all documents of correspondence will be addressed always and with its official name. Links: checklist for creditor… losses…