OUR BLOG

FactorONE Blog

Recent blog posts

When the paper trail goes cold...

When the paper trail goes cold...

Winning a new business deal or new client can be very exciting; even better is when the first payment from the new client hits your bank account. But, what happens when a problem arises and your client cannot or will not make payment on your invoice? It is tempting to ignore the underlying “paper trail” that supports your invoice when everything is going well. However, having a bonafide purchase order, delivery docket, timesheet, job sign-off etc. is often the difference between getting paid promptly and having a long (costly) argument with your debtor.

At FactorONE we encourage business owners to ensure that wherever possible:

  • A written Purchase Order is provided by the customer;
  • A signature is obtained from the recipient upon product delivery to acknowledge that the correct order has been received.
  • Similarly, if a service is being performed have an authorised person sign off that the job has been satisfactorily completed.
  • Most importantly, ensure that you have correctly identified yourself and your customer (name and ABN) on all paper trail documents. An incorrect customer name is often the easiest way for a debtor to claim that the invoice is not their responsibility.

Finally, it is worthwhile remembering that when a payment dispute arises you will not necessarily be dealing with the friendly customer you have known for many years - you could find yourself arguing with a Liquidator or Receiver who has been appointed to handle your customer’s affairs. This is not the time you want to discover that your paper trail is less than complete.

Don’t let a cold paper trail jeopardise your opportunity to get paid. Taking some simple steps now is a worthwhile insurance against future disputes.

 

The current approach of banks to SME workouts
Real time payments an affordable reality for Austr...

Client Benefits

• Free up the family home
• Improve business cashflow
• Non-Bank funding source
See more benefits >

Contact Us

Phone: 1300 322 867
Head Office: Level 18, 10 Eagle St
Brisbane Qld 4000


ENJOYING OUR CONTENT?

Subscribe to receive relevant articles and news to help you manage and grow your business.

Your Name(*)
Please let us know your name.

Email Address(*)
Please let us know your email address.

Invalid Input