Savvy leaders manage business debt

When it comes to debt collection for services rendered, there are a number of measures that firms can take to ensure that clients pay up on time.

Savvy managers with leadership training will recognise that - while risk management plays a part in protecting a business - performing background checks and calling references is only part of the solution.

Placing clear, unambiguous terms of credit can go a long way towards informing clients about a company's preferred terms of payment, reducing the chance that misunderstanding will lead to delayed or deferred debts.

Engaging with professional advisers such as corporate solicitors during the drafting of official terms of service can also make sure that a firm's documents are both legal and fair - leaving no loopholes for otherwise devious individuals to exploit.

Developing ongoing relationships with repeat customers can also help - as a personal connection can assist a manager identifying when an individual is genuinely having difficulties in payments and may also result in prompt responses without needing to resort to constant official reminders.

When a business or person has been late in complying with their contractual obligations, a firm should always make sure that it actively follows it up in a professional manner - giving the client time to respond and explain their circumstances and allowing a mutually beneficial arrangement to be met.