Growing your business…

1. YUILL & KYLE debt recovery & credit control lawyers, scotland www.debtscotland.com scowan@yuill-kyle.co.uk Growing your business… by improved cash flow… A presentation by YUILL & KYLE debt recovery & credit control lawyers, scotland STEPHEN COWAN, Managing Partner of Yuill & Kyle and ‘The Forum of Private Business Advisor for Commercial Debt and the Courts’

2. YUILL & KYLE debt recovery & credit control lawyers, scotland www.debtscotland.com scowan@yuill-kyle.co.uk The most basic concept in business A sale is not a sale until it’s paid for!

3. YUILL & KYLE debt recovery & credit control lawyers, scotland www.debtscotland.com scowan@yuill-kyle.co.uk Why should you manage your credit risk? Why should you credit check your customers? What will we cover? How do you credit check customers Some cash collection techniques If all else fails what should you do?

4. YUILL & KYLE debt recovery & credit control lawyers, scotland www.debtscotland.com scowan@yuill-kyle.co.uk Why should you manage your credit risk? Commercial: future sales are more reliable Financial: profits are increased by fewer bad debts and lower borrowings

5. YUILL & KYLE debt recovery & credit control lawyers, scotland www.debtscotland.com scowan@yuill-kyle.co.uk Why should you credit check your customers? If you knew a customer were going bust would you give 30 days credit If you knew your customer paid very late would you expect payment on time? If other suppliers know your customers they will be pressing harder for payment Get ahead of the queue

6. YUILL & KYLE debt recovery & credit control lawyers, scotland www.debtscotland.com scowan@yuill-kyle.co.uk How do you credit check customers? some useful tips Status reports from credit agencies These will give you: Full customer details Financial results Payment experience of other suppliers Registered judgments Registered lending Recommended credit rating

7. YUILL & KYLE debt recovery & credit control lawyers, scotland www.debtscotland.com scowan@yuill-kyle.co.uk How do you credit check customers? some useful tips How can reports be delivered? www.ykcreditcheck.co.uk

8. YUILL & KYLE debt recovery & credit control lawyers, scotland www.debtscotland.com scowan@yuill-kyle.co.uk How do you credit check customers? some useful tips Bank references Trade reference Account Opening Application All available www.debtscotland.com

9. YUILL & KYLE debt recovery & credit control lawyers, scotland www.debtscotland.com scowan@yuill-kyle.co.uk How do you credit check customers? some useful tips A bank reference is only an opinion and will not guarantee payment as it is based on the bank’s review of their customer’s account performance Bank references Details of a bank’s replies are as follows:

10. How do you credit check customers?  Bank Reply Meaning  Undoubted  More or less what it says - certainly the best reference given  Respectable, considered good for your enquiry  Probably the most usual good reference  Private limited company considered good for your figure and purpose  Much the same as the above, with the added confirmation of limited company status   Respectable but unable to speak for your figure  Guarded, and the enquirer should be wary  Unable to speak for your enquiry  A bad reference: trade & cash only basis  Figures higher than we expect to see  Best to proceed with further security YUILL & KYLE debt recovery & credit control lawyers, scotland www.debtscotland.com scowan@yuill-kyle.co.uk

11. YUILL & KYLE debt recovery & credit control lawyers, scotland www.debtscotland.com scowan@yuill-kyle.co.uk How do you credit check customers? some useful tips Trade references What you are attempting to do is to ascertain objective third party criteria as to your customer’s worth Will a prospective customer provide a trade reference which is unsympathetic You should bear this in mind

12. YUILL & KYLE debt recovery & credit control lawyers, scotland www.debtscotland.com scowan@yuill-kyle.co.uk How do you credit check customers? some useful tips All applicants Account opening application Full customers trading name Trading address Invoice address (if different) Telephone No Fax No Email How long in business Amount of credit requested Banker's name and address / account no / sort code important information to obtain

13. YUILL & KYLE debt recovery & credit control lawyers, scotland www.debtscotland.com scowan@yuill-kyle.co.uk How do you credit check customers? some useful tips Limited companies Account opening application Limited company name Registered office Company registration no Date incorporated Issued paid up capital Ultimate holding company Details of directors important information to obtain

14. YUILL & KYLE debt recovery & credit control lawyers, scotland www.debtscotland.com scowan@yuill-kyle.co.uk How do you credit check customers? some useful tips Sole traders Account opening application Full names and home addresses of proprietors important information to obtain

15. YUILL & KYLE debt recovery & credit control lawyers, scotland www.debtscotland.com scowan@yuill-kyle.co.uk Some cash collection techniques Identify your major customers Get to know them well Set the correct level of credit Monitor payment patterns Use credit agency monitoring service

16. YUILL & KYLE debt recovery & credit control lawyers, scotland www.debtscotland.com scowan@yuill-kyle.co.uk Some cash collection techniques Ensure you know who your customer is Accurate completion of account opening application is essential Non-major accounts Set credit limits Credit check Use credit agency monitoring service

17. YUILL & KYLE debt recovery & credit control lawyers, scotland www.debtscotland.com scowan@yuill-kyle.co.uk Some cash collection techniques Send out your invoices quickly You can’t expect to get paid unless you ask Ensure your invoice is accurate Resolve your problems a.s.a.p

18. YUILL & KYLE debt recovery & credit control lawyers, scotland www.debtscotland.com scowan@yuill-kyle.co.uk Some cash collection techniques Manage your “Aged Debt Analysis” List accounts in order of size – largest first Then by date

19. YUILL & KYLE debt recovery & credit control lawyers, scotland www.debtscotland.com scowan@yuill-kyle.co.uk Some cash collection techniques telephone letter fax Chase your customers for payment email visit stop list

20. YUILL & KYLE debt recovery & credit control lawyers, scotland www.debtscotland.com scowan@yuill-kyle.co.uk Some cash collection techniques Ensure you have a collection cycle Stick to it! Help yourself

21. YUILL & KYLE debt recovery & credit control lawyers, scotland www.debtscotland.com scowan@yuill-kyle.co.uk Some cash collection techniques If all else fails what should you do? use third parties to recover your debts collection agencies “no hay – no pay!” debt recovery lawyer fees payable?

22. YUILL & KYLE debt recovery & credit control lawyers, scotland www.debtscotland.com scowan@yuill-kyle.co.uk Some cash collection techniques Choose specialist in this area It could cost you nothing using correct technique! What will a debt recovery lawyer do? Court action Fast track collection debts over £1,500 Statutory demand (bankruptcy) Statutory demand (limited company) You can track what is happening: www.ykonline.co.uk

23. YUILL & KYLE debt recovery & credit control lawyers, scotland www.debtscotland.com scowan@yuill-kyle.co.uk Some cash collection techniques debtors cannot escape Scot free! Have kilt, will harass: Miguel Garcia Jimenez

24. YUILL & KYLE debt recovery & credit control lawyers, scotland www.debtscotland.com scowan@yuill-kyle.co.uk Growing your business… by improved cash flow… A presentation by YUILL & KYLE debt recovery & credit control lawyers, scotland