For small business, debt recovery is a major issue. This is especially stressful when margins are tight.
Understanding how to deal with late payments and debts is crucial to managing a company efficiently. In order to prevent late payment issues, you can take a number of steps. The first one being conducting background checks on customers. This will ensure you are not collecting customers who are notorious for not paying on time or have any outstanding court judgments against them. Secondly, ensure that every customer is issued a Sale of Goods Agreement or Supply of Services Agreement. Chase payments by issuing invoices in a timely manner and keep records of all invoices issued and paid. If you do not chase up invoices, overdue payments letters are also a good way to remind customers to pay. If necessary, accepting payments in installations is a good way to avoid taking legal action.
For company needs and business help like these, contact The Centre O Business Centre by email: sales@centreo.hk or call us at +852 31242888 so we can help get take the stress out of establishing your company in Hong Kong.
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