unit 15 aged debtor analysis

meibakermeibaker Trusted RegularPosts: 481Registered
please someone can help me with this
a well establish customer has been trading with us for years, and we have a great realtionship, but they have been owe the business money for over 90 days, a telephone is made and the customer said a cheque will be sent, and the a/c is not on stop.
but with the debt collection policy, after 30 days, the a/c should be on stop, and over 45 days will be hand over to debt collection company
so what should i do? should i followed the policy of the business, so the a/c is on stop, and proceeds a legal proceedings, and prov for bad debts is also set up or should i set up a meeting with teh customer. please help

Comments

  • RinskeRinske Font Of All Knowledge Posts: 2,453Registered
    Hi,

    My suggestion would be to set up a meeting and discuss it.

    I would put the account on stop for now, but as they are an established customer and trading for years, I would not sent them to a debt collecting agency, as it might ruin your relationship with them and you don't want to loose this customer.

    I hope this helps!
    Thanks,
    Rinske
  • SandyHoodSandyHood Font Of All Knowledge Posts: 2,034Registered, Moderator
    Meibaker
    Your request starts rather like a problem at work, but then reads rather more like a unit 15 task.
    I hope you don't mind these two questions, "is this a task that you have been set as part of your course?"
    "will the answer you submit be assessed to judge whether you are competent or not?"

    From my point of view I'm happy to help, but I wouldn't want someone to use my answer as part of his submission.
    Sandy
    [email protected]
    www.sandyhood.com
  • MargaMarga Experienced Mentor Posts: 981Registered
    hi

    have you thought about penalty charges? for each day the invoices are not paid that are after the due date an interest can be added


    As the company wouldnt want to incur charges they would pay on time


    It is called "Improving Customer Behaviour"
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