Tradie Profit System

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Debt Collecting

Strategies for Efficiently Managing Debtors
Implementing effective debt collection strategies helps maintain healthy cash flow and avoids unnecessary delays in receiving payments.
By proactively managing debtors, you can minimize the time and effort spent on chasing payments.
Importance of Requesting Deposits
Requesting a deposit upfront helps mitigate the risk of non-payment and provides you with a portion of the payment before starting the project.
Deposits serve as a commitment from clients and ensure that you have some funds to cover initial costs.
Offering Different Finance Options for Clients
Providing various finance options can make it easier for clients to make payments.
Consider partnering with financing companies or offering installment plans to accommodate clients' financial situations.
Minimizing the Need for Chasing Payments
Streamline your invoicing process to ensure prompt and accurate billing.
Clear communication about payment terms and expectations can help minimize the need for chasing payments.
Utilizing Platforms for Automated Direct Debits
Explore platforms that offer automated direct debit services.
By using these platforms, you can set up recurring payments that are directly debited from clients' accounts, reducing the need for manual invoicing and chasing payments.
Script for Chasing up Debtors
Develop a script for effectively communicating with debtors who have outstanding payments.
The script should be firm but professional, emphasizing the importance of timely payment and providing clear instructions on how to settle the debt.


Action Items

Make a debtors who have outstanding payments along with when their payment was due and when you last spoke. Finally categorize how long it has been since you needed to receive payment with the dropdown list in column 3.

Debtors With Outstanding Payments
Date Payment Was Due
Time Past Due
Date Last Spoken
There are no rows in this table

Debt Collecting Script

After invoice is sent, ensure you give them time as per credit terms. If not paid on the day its due, call the day after.
Ask them if they received the invoice ok? If all ok, Let them kindly know that the invoice is now overdue and ask when they are intending to pay?
They will give a date, or they may say “today”. If today you say “fab. Will that be Visa or Mastercard?” Take the details.
If they give you a date in the future, say “great. If I haven’t received payment by then, I’ll touch base again on that day”.
Diarise the follow up date.
“Squeaky wheel always gets the oil”.
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