We are currently hearing a lot about commercial rents being owed to landlords as businesses have closed down, cannot afford their overdue rents or relocated as they no longer require the space and are trying to defer their rental payments.
However, there is another problem that is beginning to raise its head. This relates to invoices which have been sent to empty properties and are now awaiting payment.
Our tracing service is working overtime locating the directors and businesses who have been issued with invoices but due to the fact that the premises have been empty for some time has meant that they may no have even seen these notifications as mail has built up or simply lost.
This is also where an effective credit management service comes into its own. We now receive copy invoices from our clients so we can ensure that the request for payments have been received. As soon as we realise that there is a problem with communication we can try and re-establish that vital link, ensure the payee has received the information and when our client will expect their outstanding monies.
Of course if they claim not to have had the invoice we can then ensure that we have the correct address so there is no misunderstanding and no opportunities for the payee not to pay without good reason.
We are anticipating that this problem will be an increasing one particularly to the small to medium sized business sector and therefore we are recommending that all these businesses establish a reliable credit management service whether it be outsourced to a company like ours or carried out in house. However, if in house there must be a system which may include a good CRM system and time allotted for the process to be properly administered.
For any advice we are more than happy give our overview of your current system.