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

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

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

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

5. debt recovery & credit control lawyers, scotland YUILL & KYLE 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. 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 debt recovery & credit control lawyers, scotland YUILL & KYLE www.debtscotland.com scowan@yuill-kyle.co.uk

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

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

9. How do you credit check customers? Bank references some useful tips debt recovery & credit control lawyers, scotland YUILL & KYLE www.debtscotland.com scowan@yuill-kyle.co.uk 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 Details of a bank’s replies are as follows:

10. How do you credit check customers? debt recovery & credit control lawyers, scotland YUILL & KYLE www.debtscotland.com scowan@yuill-kyle.co.uk 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

11. Trade references How do you credit check customers? some useful tips debt recovery & credit control lawyers, scotland YUILL & KYLE www.debtscotland.com scowan@yuill-kyle.co.uk 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. How do you credit check customers? Account opening application some useful tips debt recovery & credit control lawyers, scotland YUILL & KYLE www.debtscotland.com scowan@yuill-kyle.co.uk important information to obtain All applicants 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

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

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

15. 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 debt recovery & credit control lawyers, scotland YUILL & KYLE www.debtscotland.com scowan@yuill-kyle.co.uk

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

17. 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 debt recovery & credit control lawyers, scotland YUILL & KYLE www.debtscotland.com scowan@yuill-kyle.co.uk

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

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

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

21. 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? debt recovery & credit control lawyers, scotland YUILL & KYLE www.debtscotland.com scowan@yuill-kyle.co.uk

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

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

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