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Debtor Problems

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  • 24-09-2006 8:36pm
    #1
    faceman
    Moderators, Category Moderators, Arts Moderators, Entertainment Moderators, Social & Fun Moderators Posts: 16,600 CMod ✭✭✭✭


    Just curious to see if any of you out there, particularly business owners have problems with your debtors, he it being cash thats hard to collect or cash that is always late?

    Does anyone pass their debtors to our third party for collecting and what are your exeriences?


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    #2
    Sponge Bob
    Banned (with Prison Access) Posts: 25,234 ✭✭✭✭Sponge Bob


    no easy answer , certain industry sectors like building are always late (90-120 days is good) where others are better.

    the scary bit is when someone who used to pay in 60 days max has slipped out to 90 days, not a good sign that at all

    you can 'factor' invoices but if your gross margin is less than 25% its risky because the factors like intrum justitia for example will take their cut.


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    #3
    bounty
    Closed Accounts Posts: 978 ✭✭✭bounty


    MOD EDIT: irrelevant post...


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    #4
    Savman
    Closed Accounts Posts: 8,323 ✭✭✭Savman


    whatever about the OP's property habits, this is the Biz forum Mr Bounty...:cool:

    Regarding bad debtors, it's a tough one. Give them as many reminders as possible without using threatening language. If they're giving you the runaround then let them know unfortunately they leave you no option than to pursue the matter via the debt recovery process.

    Again don't make threats, the solicitor or debt collection company do enough of that and you want to leave it open to the Debtor being able to contact you at any stage so try remain approachable at all times, sometimes the hardest thing about contacting a creditor is the condescending tone down the phone.

    I always pay what I owe, but if some prat on a high horse is gonna start dishing out idle threats I'd stall out of principle. Approach it the way you'd like it approached if the situation was reversed...

    Do unto others....:D


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    #5
    faceman
    Moderators, Category Moderators, Arts Moderators, Entertainment Moderators, Social & Fun Moderators Posts: 16,600 CMod ✭✭✭✭faceman


    bounty wrote:
    another buy to let amateur, starting to feel the pressure :rolleyes:

    LOL

    no actually, i specialise in credit management and im trying to assess what business owners currently do to manage their debtors, if anything at all.

    Dont worry im not selling my services! Actually doing a bit of market research!


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    #6
    mad m
    Registered Users Posts: 9,004 ✭✭✭mad m


    There was a great programme on BBC last night about Baliffs going around collecting debts. A journalist went undercover with spy cameras and you would not believe the corruption that went on.


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    #7
    blue4ever
    Registered Users Posts: 1,255 ✭✭✭blue4ever


    I ran a business for a few years – and debt collection was the single biggest threat to the company. I found that there was a real f*** you attitude – once somebody received the goods or service. I also found that if you got a reputation for being weak on the collection front – then some people really went to town on you.

    The courts – what a laugh – 6 months for a hearing, then a lenient judge who orders that they pay €10 a week for a debt that could be €1000! Mad.

    I took great pleasure (before I left) in having a committal served on person who screwed us around for years – and told the world in the process. When the person still had not paid a penny of the debt (even after giving the court a commitment that it would be paid) – Judge issued a warrant for that the person to do a month in the nick – lovely.

    Do as much background as you can on a person/company. If its goods – stitch in the contract that you own the goods until they are fully paid – make an exhibition out of somebody that is noted for poor payment – repo the goods.


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