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Posts for August 2011

Top tips for tracing business debtors

August 31, 2011 by Anita Brook

In business, companies provide products or services to customers and if all goes well, you have little cause to actively chase for payments.

Unfortunately, you may face a situation where a debtor simply seems to vanish.

Prevention is better than cure

There are a number of things you can do to reduce the likelihood of a client going astray.

  1. Collect detailed information about your client at the start of your working relationship. Make sure you have the company’s full address, phone number and a named contact – you may also need the details of accounts department information for payments.
  2. Run a company credit check.This will tell you if the company has a good payment relationship with other suppliers. You can run a credit check using specialist software such as RiskDisk or via online services like those offered by First Report.
  3. Keep track of your customers. Regular contact with clients – particularly those who have outstanding debts – will mean you quickly become aware if something is not right or if they have suddenly relocated.

If a debtor disappears

If your protective mechanisms fail and a debtor vanishes, there are still things you can do to trace them:

  1. Run a credit check again. This may reveal a more recent trading address than you have on your records.
  2. Check with Companies House. You can run an online search to view the current registered address of any active company.
  3. Send a reminder by recorded delivery. If you are receiving no response, or letters are being returned by Royal Mail marked “No longer at this address”, it doesn’t mean the company isn’t there. Send a letter that requires a signature will give you an idea if they’re simply hiding.
  4. Contact the local Royal Mail sorting office. If the company has indeed moved on, Royal Mail may have a forwarding address for the company.
  5. Contact other suppliers or clients. Have a look on the company’s website or marketing material and see if you can identify any other suppliers or clients who may hold a forwarding address.
  6. If all else fails, seek help. If your chase leads you nowhere, you may wish to seek professional advice from debt collectors. They track and trace companies and individuals on a daily basis using a variety of methods, and could help you re-establish contact and recoup the payment you are owed.

Anita Brook is MD of Debts Assist, a credit control and debt recovery firm, which helps businesses improve cash flow while keeping business relationships intact.

The Lawyer’s Guide to Skiving

August 15, 2011 by Michael Scutt

Businessman with phoneWhat you need to know before that croaky phone call….
Michael Scutt

Eskimos have, it is said, 200 words to describe the different types of snow.  The British have a similar number to describe not going to work: pulling a sickie, swinging the lead, bunking off, having a duvet day, as well as the plain vanilla description: skiving.  I mustn’t forget my wife’s personal favourite: business development.  Our creativity for thinking up euphemisms for taking unauthorised time off work is matched only by our propensity for bizarre excuses to explain unauthorised absence. 

A recent Price Waterhouse survey of 1,190 people reported one in three people admitted to having lied to take sick leave, costing British business up to £32 billion a year.  Most people skived off because they were bored or depressed.  In many cases they didn’t see it as being dishonest because they thought they were owed it by their employer for having worked hard. For 21 per cent of respondents, family was the real reason behind pretending to be ill, emphasising the importance of flexible work practices as a means of reducing absenteeism. 

Illness was the most common excuse given and some people admitted faking symptoms around the office in preparation for pulling a sickie.  It reminds me of a friend’s father (now sadly deceased) who would, every now and then, get a flare up of the “old malaria” and have to take a couple of days off, much to the bemusement of his employers in St Albans (he had, of course, contracted malaria whilst in the Army on duty in the Far East during the War and, apparently, it does recur every now and then). If I remember correctly (and probably not, because my memory isn’t what it was these days) Bridget Jones’ method for taking a sickie was to announce she had an appointment with her gynaecologist.  That ensured no further questions would be forthcoming from her, male, boss. 

On the subject of dodgy memory, my favourite excuse in the report was given by the person who claimed amnesia as an excuse for not attending work; what, they forgot where they worked? Or that it was a weekday and they had to get up? A close contender was the man who said he had to take his dog to the vet, having previously told his employer the previous week that it had died.  Other excuses included having being hit with a dart in the back of the head (sounds quite nasty, actually), injury during sex and someone who said their dentist had diagnosed early signs of dementia “in their gums”. 

If you’re thinking of pulling a sickie but can’t think of any good excuse then, never fear, there’s an app called, appropriately enough, “skiver” to help.  You put in how many days you want off and it will come up with an appropriate and plausible sounding ailment and list of symptoms to cover you.  Fancy one day off?  Have a migraine. A week?  Try a dose of Chronic Fatigue Syndrome. Six months?  Bubonic plague, perhaps?  Helpfully the app will also generate an email or text to your boss so you don’t have to break the bad news, which might be embarrassing if you’re phoning from the pub. We’re not told how sophisticated the messages are but I hope it doesn’t say “I am suffering from housemaid’s knee today and won’t be in. Signed My Mum”.

Employees should also beware the schoolboy error made by one Kyle Doyle in Australia a few years ago.  He was man enough to phone his boss to say he was unwell and then updated his Facebook status to read “is not going to work. Fxxx it, still trashed. Sickie woo!!!” whilst forgetting that his boss was one of his friends on Facebook. Silly. Unemployment followed.

Employers - don’t despair. There’s an anti-skiving app for you called Crystal Ball.  It is designed to cut down skiving amongst non-office based workers by tracking them via the GPS on their mobile phones whilst out and about.  Ostensibly the idea is to keep a watch on expenses and mileage claimed, but the wider use for it is clear.

Riot victim? Get free legal advice here

August 15, 2011 by Georgina Harris

Jar of coins and gravelGeorgina Harris explains how lawyers will help – with no fee

Planned to launch this week, professional body the Law Society has set up a helpline that will help victims of the riots get free legal advice.

With a particular focus on helping small independent shops and businesses to restore their lives and finances, a specialist operator on the phone helpline will take details of the cases, make referrals where necessary and place cases using the current network of pro bono (free) agencies.

Law Society president John Wotton explained “We have already seen how a collaborative effort of this kind proved extremely valuable for the victims in the wake of the London bombings.”

“Over the coming months, the victims will need legal advice on insurance, contract law and a host of other issues. It is vitally important that people who need practical help to get their businesses or personal lives back on track in these very difficult circumstances should have a quick route to specialist advice.”

Find details of the helpline at the Law Society.

Worried? Riot advice for small businesses now

August 11, 2011 by Georgina Harris

In the aftermath of the rioting throughout England this week – well, what we’re hoping is the aftermath – thousands of businesses are facing eye-watering cash losses. With estimates that, for example, one in ten of the UK’s leisure and retail business have been hit by sudden disaster, many firms who have been spared to date are concerned. But forewarned is forearmed.

Find out how to protect your firm now with our pick of the best web action guides – and, if you’re already facing the clean-up, the final factsheet takes you through the maze of getting your business back on its feet.

  1. Secure your business against the threat of attack: police and Federation of Small Business action list.
  2. Premises, cars, homes: find out what your insurance policy covers
  3. If you’re not insured, this tool tells you in two minutes what insurance you need:
  4. Get a decent insurance broker on the British Insurance Brokers' Association (BIBA) website or select a broker on the Institute of Insurance Brokers website.

And if the worst happens…

5.  How to get your losses repaid if you’re insured – or not.

 

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