Credit Matters Blog

Why Did You Do it?

Kim Radok 12 July 2011

Why did you do it?

So, you are back again - that's good.

It is a question we always ask afterwards. "Why did you do it with somebody you didn't know?"

Selling on credit is all about doing what you need to do, before you need to do it.

Therefore, you should know who you are dealing with before you deliver the goods or services to the customer. This is one of the key factors in getting paid when you sell on credit. Searching for the customer's details after they have received your goods and services, is often a waste of time and a fruitless task.

A typical example seen too often is, a business will supply a product or service, and suddenly, the customer is not there any more.

Strange, unusual - don't you believe it.

My first story is all about the file I was given sometime ago. The customer had not paid the invoice and I was told to contact them for payment.

When searching for contact details, I found the authority to supply the goods was received from a hotmail email account, with a mobile telephone number as a reference.

I attempted to contact the customer on their mobile phone number, only to find the  number was no longer invalid. Then over the next three weeks I sent four emails.  Unfortunately, there was no reply.

On review with the saleperson, we found there was no other way to contact the customer, other than through their mobile phone and the hotmail email account.

With no where else to turn, the account was written off as uncollectable.

What is the moral of this story? Do not supply any customer until you know who you are dealing with, have verified a legitmate address and contact details.

Would you like more "Why did you do it" stories?

Perhaps you have a similar story, please do share it. We would all love to hear it.

May you be paid today rather than tomorrow

Kim from Credit Matters