CD 1045 - 52pp Text 21/8/08 12:17 Page 44
ADVICE
Credit control - Tips in a recession
by Kate Lester of Diamond Logistics
Having been in business for the last 16 4. Look out for trades that are historically
years I have been through 3 so called high in insolvencies. I wouldn’t be so
economic downturns. The key bit of info indiscreet as to mention them here,
to remember is that profit is sanity, but you know who they are! Never
turnover vanity and turnover means forget as a courier company you are
nothing if you are not being paid for the an unsecured creditor providing a
work you have done. service – which means you have very
The warning signs that there may be
little hope in getting anything out of
trouble ahead;
liquidation once the VAT and IR have
1. Anyone with changing trading
had their share.
patterns – this is down turn as well as 5. Look at what is particularly affected by
upturn. Many a time have I seen a the current down turn – we have just
normally fairly quiet user start using had a minor bad debt to a house
daily just before the pop. Also month developer hit by the huge downturn in
on month off users – normally the housing market, I would advise
swapping to another courier company
opportunity for over £40k a piece.
trading cautiously with affiliated
when you put their account on hold -
Ouch.
trades.
are always going to be less reliable.
3. Our golden rule is credit check –
6. And finally – you are a courier
2. Beware of the total outsourcing
register with a good credit checking
company not a bank. Your credit
concept. Many a time I have been
agency, check their trading record
terms are a mutually binding contract
asked to take over the entire transport which you clients should be respectful
requirements of a company. I said no
and if it’s anything remotely dodgy
enough to adhere to. If they don’t
due to adverse accounts and
impose a low credit limit – or ask for
there may well be a problem – and as
woman’s intuition - in both cases the
weekly settlement of invoices. Don’t
hard as it may be to put a good client
companies then went down hitting the
forget – it may hurt losing turnover but
on hold – there is no point doing the
couriers who did see this as a golden
not if you are doing it for free!
work for free.
SPONSORS OF THE
NCA AGM SINCE 2004
44 Courier Direct FIRST FOR NEWS & VIEWS
Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52