Someone Owes Me Money

If you have cash problems because people are slow to pay you, find out about ways to get paid more quickly.

Our team of advisors also have the depth of business experience to get you on the right track, and their service is completely free. For confidential, free advice call 13 12 49 or contact us by email.

 

Someone owes me money

If someone owes you money that’s now a bad debt, use our:

The Arts Law of Australia website also has practical information on chasing up an outstanding payment in Western Australia, including a sample debt recovery letter of demand

 

Ways to get paid more quickly

Use our Small Business Brief on credit management to learn more about setting up systems to reduce the amount of money tied up in debtors, and reduce the exposure of your business to bad debts.

The Curtin Growth Owner expert who presented our BiZFiT finance course in 2011, recommended changing your terms of payment because if your terms are 30 days and you invoice at the end of the month, customers actually have between 30 to 60 days to pay. This means you can be waiting 90 days to get paid.

If this is your situation your business is probably also losing money from bank charges, because you may be going into overdraft while you’re waiting to be paid.

If your business can't invoice up front, you should still set up a process for quickly dealing with debtors, and never delay dealing with bad debtors. The faster you chase up your bad debtors the better your chances are of getting paid. Consider including:

  • A system for extending credit that involves credit checking new customers or clients and initially trading with them on a cash-only basis to evaluate how much credit to extend when giving them an account.
  • Accounts receivable policies for slow payers, and if you find chasing debtors too stressful and can afford it, consider outsourcing this role to a professional debt collector.
  • A written agreement. Clearly show your terms on all relevant business documents (especially your credit application and terms of trade).
  • A form for customers to sign which acknowledges the satisfactory condition of your goods and/or services as well as the fact that they’ve been received.

Check out our Money Matters section. It covers the financial aspects of running a business and includes detailed information about:

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