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A How-To Guide to Get Debtors to Settle Outstanding Invoices

Tips for New Zealand Small Businesses: A How-To Guide to Get Debtors to Settle Outstanding Invoices

MoneyHub compiled its comprehensive guide after working with numerous small businesses operating all over New Zealand. The free-to-all guide takes small business owners through the entire debtor process, from checking their worthiness as a customer to the last resort of calling in debt collectors. Results from a pilot study indicate the guide had proven popular with a number of business owners across a number of industries.

MoneyHub’s Senior Researcher Christopher Walsh who led the guide’s construction said “We’re delighted to present this as a must-read for every small and medium sized business in New Zealand. Late payment is a major cause of stress for business owners; we wanted to help solve that issue with a comprehensive guide on how to eliminate unnecessary risks and debtor delays”.

“The guide covers everything from vetting a potential customer, enacting terms & conditions, considering cloud accounting software and scheduling invoice reminders. It also offers effective scripts for payment reminders and phone calls, before concluding with suggested last resorts such as small claims, debt collection and/or hiring a lawyer”.

“When it comes to collecting money, the feeling can be very uncomfortable, but business owners must remember that they have the right to payment for goods or services supplied, and had the customer paid and not received what was promised, they would be asking for a refund – collecting money owed is the same thing”.

“Time and time again we’ve heard from businesses who are on the verge of letting a debt go after months and months of chasing. We encourage business owners not to do this – it will only encourage the bad debtor to default on other invoices with other businesses. Instead, we suggest following it to the end – harassment and threats that mean business can quickly convert a problem debt to a paid invoice”

“We’ve also set out common sense tips for maximising the likelihood of having an invoice paid on time. These include avoiding hand-written invoices, double-checking the address of the customer, resisting writing off the invoice, working with customers on payment plans if they realistically are struggling and keeping all emails from the customer which support a claim to payment. Businesses could be limited by avoiding emails or calls about payments as well as using antiquated accounting methods”.

We anticipate a lot of feedback from businesses around New Zealand, and the page would be updated on an ongoing basis.

More: Get Debtors to Pay Invoices

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