Every business will have customers within their commercial debt recovery process who are difficult to deal with. They might be slow to pay, or they may demand discounts for no reason. When these customers become a drain on your resources, it can make sense to stop supplying them altogether.
When should I cease to supply bad customers?
It is a difficult decision to decide to stop supplying bad customers. Often it’s the last straw in your commercial debt recovery efforts. It can seem ‘extreme’ almost, however, the benefits of doing so for you and your business can far outweigh the negatives of continuing to work with them.
There are a few telling signs that you should stop supplying a customer:
– They’re constantly slow to pay
– They dispute every invoice
– They ask for unreasonable discounts
– They make excessive demands on your time or resources
If a customer is causing you stress and taking up valuable time that could be spent elsewhere, it might be time to stop supplying them.
What are the benefits of ceasing to supply bad customers?
There are a number of benefits to stopping the rot and cutting off bad customers:
– You’ll improve your cash flow – This is probably the most important benefit. If you’re constantly chasing payments, it can take its toll on your business’s cash flow. Stopping supplying bad customers will free up time and resources that can be put towards chasing payments from other customers.
– You can focus on your good customers – By stopping supplying bad customers, you can focus on the ones that are actually profitable for your business. This will help you to grow and develop your business in a sustainable way.
– It’ll improve your credit control – If you’re constantly having to chase payments, it can be difficult to keep on top of your credit control. Stopping supplying bad customers will give you more time to focus on your credit control processes, and make sure that you’re getting paid on time.
– You’ll reduce your stress levels – Dealing with difficult customers can be very stressful. If a customer is causing you anxiety, it might be time to stop supplying them.
How can I stop supplying bad customers?
If you’ve decided that enough is enough, and you want to stop supplying a bad customer, there are a few steps that you can take:
– Talk to them – Often, the first step is to have a conversation with the customer. This gives them a chance to explain their situation, and gives you a chance to explain your decision. If they’re truly a difficult customer, this might not be possible, but it’s always worth trying.
– Give them notice – Once you’ve made the decision to stop supplying a customer, you should give them written notice. This gives them time to make alternative arrangements and means that there’s no misunderstanding.
– Follow up with them – Once you’ve given them notice, make sure to follow up with the customer. This ensures that they’re aware of your decision, and gives you a chance to chase any outstanding payments.
Commercial Debt Recovery
It’s important to remember that you don’t have to stop supplying a customer just because they’re slow to pay. If you’re happy to continue working with them, you can use other methods to encourage them to pay on time, such as charging interest on late payments or sending reminder letters.
However if feel you’ve exhausted all your options and that ceasing to supply bad customers seems like the best option, consider how commercial debt recovery can support your case and business.
Commercial Debt Recovery Process
Our specialist team will begin by reviewing your debt(s) to assess the likelihood of successful recovery. We always give honest advice so if we don’t think there is a possibility of successful recovery, we will tell you. If we think we can help, we will then move to engage with your debtor.
We have a proven track record of recovering debts quickly and efficiently on behalf of our clients. As we operate on a no collection, no fee basis, you can rest assured that we will make every effort to recover your debt.