Full and Final Payment.
About ten years ago we received this letter from a firm of Solicitors. This is a must read for our clients. Please pass this information email onto other friends in business.
Payments in Full and Final Satisfaction.
You occasionally encounter the situation where a creditor is sent a cheque by the debtor with an accompanying statement to the effect that the cheque is paid.
In full and final satisfaction of all claims.
These words, or similar words that accompany such payments, are to be regarded as a tender or offer to pay a lesser sum than the amount owing. Usually these offers follow a dispute as to the sum owing for goods and services provided or as to their quality.
To deposit this cheque is to accept the tender or offer.
The result is more often than not a binding contract and a loss of the creditors right to claim the balance. This is a general rule applied by the courts.
We recommend each situation be reviewed on its facts and if there is any doubt about whether to accept a payment, a solicitor should be consulted.
Message here, read any mail that comes with a cheque before banking..
As always, please pass onto others our details for debt recovery. Our popular Debt recovery online is assisting in the cash flow of many of our clients.
Let others know how they can save with us and accelerate their cash flow.
www.robertmcintyre.com.au
1300 001 173
April 09
Accelerate that cash flow.
Last month we spoke of the importance of a system or routine and sticking to it. We would like to forward a couple more suggestions that may assist you and your organization.
It really comes down to how you want to run your business .These are suggestions only and we do hope some of you benefit from them.
Put your system in writing.
Reasons for doing so..
- Once in writing it becomes a guide for others and new members of the team to use that are unfamiliar with the way you operate in this area.
- When people are away for the day, then others can sit in and take over.
- The sooner people become familiar with what they have to do the faster you are going to be paid and back to normal.
Make your system easy to follow for others.
Take nothing for granted here.
Sit with the person concerned or new member for 10 minutes and go through it with them step by step so it is understood.
Encourage this person to ask questions regarding the system anytime.
People must understand what you are trying to achieve here, plus its importance to the business.
If you have an experienced collection person then get them involved. They may have a better way to do things.
Because you know what to do does not mean others do.
Once you have set in and established a system things will move more smoothly for you in this area.
Keep it simple.
The system does not have to be complicated
A great test for your system is to sit down and get someone to run through it first.
If they are confused then make adjustments. If it works, well done.
The system can be as simple as a list of names kept in a manila folder with dates of contacts, next date to follow up and hand written notes/comments, promises etc.
Remember, it is your money
All the best
Rob McIntyre
www.robertmcintyre.com.au
1300 001 173
March 2009
Accelerate that cash flow!
Dear Client,
Most of the news on the Global economy points to a challenging time for Australia.
I thought it is probably a good time to approach all our clients and start sharing some debt recovery approaches that we as debt collectors take for granted every day.
I know that you do not have debt recovery software as we do, but some of these suggestions may assist you in being more effective in your approach in a pre debt recovery stage.
Many of you are already competent in this area, however, many of our clients find this daunting and well outside their area of expertise and comfort.
We truly hope some of our suggestions do help and assist when following up on those over 30 day accounts.
We will use 30 days as the standard.
1. A key to collecting outstanding money is a proper follow up.
By this we mean systemize your collection procedure and stick to it.
Make it at the same time every week to create the habit and to increase your effectiveness.
Even if it is sending or emailing your client a quick reminder for payment 5 days after End of month.
Then diarize to contact the client again in 7 days.
This may sound hard and over the top, but what you are doing is qualifying very early your clients intention and now you have created a reference point from where you can monitor when you get paid.
2. Follow up again in 7 days.
If you have not been paid then you are now looking at 42 days and possible out side the terms of your agreement.
Diarize again for 7 days.
3. You are now at 50 days-but inside the 60 days that every one seems to take as the normal now.
However, if you have had no response from your client by now, then mark the account for closer attention.
Pick up the phone or send a letter but make sure you follow up if you have not been paid.
Some clients are always going to be slow so get to know your top 20% of clients.
The key is action and by putting a simple system in place, your collection procedure is always going to be far more effective than randomly calling, getting around to doing it or worst of all procrastinating and waiting too long.
By acting sooner you may be able to identify and rectify possible disputes that could have lead to a non payment of your account. Doing this alone can get you closer to being paid.
Take action now!
We are happy for those who are taking full advantage and getting results from our popular Debt recovery Online System, the feedback is terrific so please spread the word.
If I could ask that you pass on our details or this email to someone you know who maybe considering Debt Recovery.
Remember its your money!
All the best
Rob McIntyre
www.robertmcintyre.com.au
Ph.1300 001 173
Fax 03 808 00 774
rmainfo@telcoplus.com.au
