1 - Check your customer in advance
Ask yourself who you are dealing with. Is the buyer creditworthy? Is your contact authorised to enter into the agreement? Are you doing business with the right entity? Check this before entering into talks: through the Chamber of Commerce, credit reference agencies or your credit insurer.
2 - Apply general delivery and payment terms and conditions
Include in the agreement that your terms and conditions apply and that you do not accept the terms and conditions of the party you are doing business with. Hand over your terms and conditions when entering into the agreement.
3 - Use the General Conditions of Carriage
Do you transport goods? Or do you have goods transported within the Netherlands? Then agree that the General Transport Conditions 2002 (AVC) apply to the transport. Note: the carrier is liable per kilo. Check whether the carrier's liability covers the load. Sometimes it is better to insure the cargo separately. And do not forget your waybill if you are exporting goods by road.
4 - Get your buyer to sign for receipt
And check that the person signing for receipt is authorised to do so. Also ask for a company stamp
5 - Invoice immediately after your delivery
And include at least the following details on your invoice:
- Your own name, address and phone number;
- Correct company name and address of your buyer and contact person;
- Indication of the nature and quantity of goods delivered;
- Price, excluding and including VAT in the appropriate currency;
- Agreed payment period;
- Your bank account number, IBAN and BIC code.
6 - Call your buyer before the due date of your invoice
You ask whether the goods and the invoice have been received in good order. This shows your interest and prevents your buyer from belatedly expressing dissatisfaction. Also ask your buyer if he wants to pay on time.
7 - Ensure a proper and conclusive dunning process
If you still don't get paid on time, call your customer. Then send him a written reminder with a reasonable deadline (one week) for payment. If this does not happen, send a written reminder with a date (within one or two days) by which the money must be in your bank account. Do not forget to mention the costs associated with late payment - including collection and interest costs. If you make a payment arrangement, put the agreements and dates by which you must receive the money in writing.
8 - Make sure your procedures are known internally
Put your debtor management in writing: who has what tasks, what successive actions are and the associated deadlines. Everyone's responsibilities are then established and clear. Periodically evaluate whether the procedure and its application still meet the organisation's needs.
9 - Set ambitious goals and actions for your organisation
Good debtor management is underestimated. This exposes you to unnecessary risk and underutilises opportunities to improve your working capital. Therefore, set yourself ambitious goals and actions. Measure these periodically and adjust where necessary.
Accounts receivable management is not a one-off thing. It is a process that you work on throughout the year and hopefully successfully. Optimising your organisation's working capital will give you room to invest for the future. Do you believe that good debtor management can also move your organisation forward? Don't hesitate and start applying the above roadmap right away.
