What happens when a Business Defaults and delays making payments to Smaller Business Owners like you and I?
This blog looks at what all Small Business Owners can do to try and eradicate any nuance towards taking legal action.
I’ll looks at some simple things that you can do to tighten up your own processes:
Record Keeping
What kind of CRM system are using at the minute?
Is it ISO compliant?
Does it adhere to the jurisdiction and market that you are operating in safe record keeping, so that when a dispute arises, everything is carefully documented?
Open Communication
Most of the time, burying your head in the sand won’t mean the problem will go away.
More to the point, it’s more likely to turn from a Molehill into a Mountain.
Being open, honest and transparent encourages your Customer to behave in the same way, therefore negating the need for reconciliation at a later date.
Continuous Tracking
As you continue to grow in Business, how are you tracking how your payments are coming in?
Is your current method working … or do you need to look at your process and make improvements?
If you are considering Court Action, have you:
Thought about Mediation and/or Alternative Dispute Resolution?
Why?
Well, taking Court action should really be the last resort for any business owner. It’s only worth considering if you’re being ignored. Until then, it isn’t advisable.
The time spent and the Costs that one has to take into consideration means that Pre-Legal Action is better negotiated. Even if that fails, it may still be a better option to take a commercial haircut and walk away as a loss.
Questions
If you would like any further clarification on any of my advice above, don’t hesitate to get in touch: