5 ways to prevent the Bad Debt Domino Effect
Managing a business is not easy at the best of times but can be very rewarding and satisfying in many ways with great outcomes.
But experiencing a bad debt can be annoying at best and devastating at worst.
Bad debt can move a successful business into insolvency and cause financial ruin to the directors and at times no fault of their own because it was due to the Bad Debt Domino Effect.
Starts with one company getting into financial trouble and cannot pay its debts and the companies they owe money to cannot pay their debts because of the first company not paying them and so on the domino effect gathers momentum.
“5 ways to prevent the domino effect”
1) Be a very good Credit Controller or hire the best you can afford
2) The first rule of Credit – know with whom you are dealing
3) Be vigilant with collection of your accounts and set procedures in place
4) Insure your debtors ledger against insolvency loss – Credit Insurance
5) Communicate with your clients at every opportunity to keep in touch
How to prevent Loss = “Credit Control + Credit Insurance”
direct 0408911162 or office 92283300
Recruitment and Credit Services Consultant