How to avoid tracing missing debtors.
When running a business it is very important that you obtain as much information as possible about your customers. This includes ensuring you obtain the following:
- Completion of an account opening form
- Full address and telephone number of a private individual – verifying these against reliable documentation
- In the case of a limited company, request the full limited company name and registration number; and for a proprietorship/partnership, ensure that you take private address details and telephone numbers.
It is also advisable to use a credit reference agency to confirm the financial stability of new and existing clients.
Ongoing debtor monitoring
It is important that you keep constant contact with your existing customers, especially if they have outstanding debts. Keeping regular contact will make you aware if a debtor relocates much quicker. If payment is not received on time then ring and check that invoices have arrived and that contact details are still the same.
It is important that all parts of your business feedback if a change of address appears to have occured whether it be the distribution division, sales division or accounts department.
It is important to remember that if you leave a debt outstanding without chasing it, the more difficult it becomes to recover, and the more likely you are to find yourself in a situation where the debtor is not contactable.
Of course some debtors do go missing deliberately in an effort to avoid payment. When this happens and all attempts have failed – then is the time to give People Finder Direct a call.