by scowan
13. July 2010 19:58
Shield your business from bad debt cont...
This week I’m continuing the theme on how to take your own steps to avoid bad debt.
4. Utilise the Legislation
Could you be entitled to more money? Remember you may well be able to add Interest and Collection costs to the debt. Find out more at http://www.debtscotland.com/rightclaimint2.cfm
5. Keep a tab on things
It’s a good idea to have a procedure in place for flagging up unpaid invoices. If the customer hasn’t paid, is there a reason for this? You’d be surprised just how many businesses don’t do this as a matter of course.
6. Talk to your Bank and HM Revenue and Customs.
Find out if you are able to get access to increased borrowing. Can you take advantage of invoice discounting or Factoring Services? It could be beneficial to let HM Revenues and Customs know if your customer folds as you should be able to reclaim VAT and may even be able to arrange deferral of VAT and PAYE. I’ll be expanding on this topic in the next few weeks.