Unpaid debts can put a business's cash flow at risk, especially for an entrepreneur who is just starting out. Adopting an effective strategy to prevent and manage these situations is essential to ensure the sustainability of your business. Here are the best practices for limiting risks and recovering your debts.
As soon as a quote or a contract is issued, it is essential to specify the terms of payment: deadlines, accepted payment methods and possible penalties in case of delay. The more detailed your conditions are, the easier it will be to require them to be applied in case of non-payment.
Including deposits for important services also helps to secure your cash flow and avoid unpleasant surprises.
Before concluding a sale or a service, it may be appropriate to check the financial strength of the customer, especially for high-value contracts. You can request a balance sheet extract, consult financial databases or even require guarantees such as a bond or credit insurance.
Good payment tracking makes it possible to quickly identify delays and take action before they become problems. The use of the services offered by Klark helps you set up automatic reminders and monitor the status of payments in real time.
Scheduling gradual reminders is an effective method:
In some cases, a customer may experience temporary financial difficulties. If the customer is usually reliable, it may be a good idea to talk to him to find an amicable solution, such as a staggered payment. This avoids immediately initiating burdensome procedures while maximizing your chances of recovering the amount due.
If, despite the reminders, the payment is slow to arrive, it may be useful to call on a mediator or an amicable collection service. Some specialized platforms allow you to intervene quickly to recover your debt without deteriorating the relationship with the customer.
When all amicable attempts have failed, an official notice of default may be sent to the debtor. If this remains ineffective, you can initiate legal proceedings, for example via an order for payment. This process, although longer, allows you to obtain a court decision in your favor to force the settlement of the debt.
The use of payment management tools reduces the risk of non-payments by automating reminders and facilitating collection. By offering solutions such as direct debit or online payment, you reduce the dependence on manual payments and reduce the risk of being forgotten.
Setting up incentives for on-time customers (early payment discounts, favorable terms on future purchases) can encourage good practices. In the same way, quickly identifying at-risk customers makes it possible to adapt your strategy: strengthening contractual conditions, mandatory installments, or even reducing the billing period.
Managing unpaid bills effectively relies on rigorous foresight and a quick reaction to delays. At Klark, we are developing a comprehensive banking solution that gradually integrates the essential tools for entrepreneurs: payment tracking, automatic alerts, and financial services tailored to your business.
By centralizing the management of your cash flow, Klark helps you limit the risks of non-payments and secure your financial flows. Are you looking for a solution to optimize the management of your business? Klark is with you!
