Axis Capital Business Funding Review
: How to Avoid Debts
Jakarta, Indonesia - Being a small business owner is hard. The responsibility of keeping your company stable, managing your employees, and keeping up with your competitors are hard enough to tackle. Dealing with your customers is another thing and perhaps the most challenging. Since you are just a start up, clients are important since they can give either good or bad review about your company that can greatly impact your business. If you are still not experiencing some kind of issue with your customers, it is better for you be prepared than be sorry later on. To prevent being drowned in debts, you can review the following steps:
1. Verify Customer’s Information
It is always better to verify anything first before plunging into a business deal. Just because you are in need of customer, it does not mean that you are to grab every possible sale. You also have to see their capability to pay especially if your services and/or products are on installment basis. It is also best to keep tabs with businesses of the same field. This way, you are able to know if a certain customer is in a habit of making non- or late payments.
2. Put Everything in Black and White
Documenting everything is vital in every transaction in case worse comes to worst. With the verified information including your client’s identity and their compliance and agreement, you can be rest assured that you are covered by that single piece of paper in case complaints would pour in or if needed for proof of fraud.
3. Draw up terms and conditions
Aside from the agreement in a written paper, you also have to have a foundation of your business regulations through a policy. These terms and conditions should be transparent to both parties. Any alterations, adjustments or changes can be done after the client have known and have been educated of the rule of the trade.
4. Keep open any communication
Any changes and alterations after the agreement and terms and conditions have been signed should be known by both parties. Or in case of unpaid charges, it may be that the customer had just forgotten. It is your right to follow up on them and their responsibility to give you active contact information.
5. Have a Plan B
Many businesses experience customers who – for one reason or another – may have delayed payments. You could consider putting the customer’s credit facility on hold preventing any further credit sales until the account is cleared or find any other alternative to resolve the issue.