Credit!!!!!!!!!!!!!

[evox]

http://www.checksure.biz may be of some use to you. not sure if it is the sort of thing you are looking for.

[Bill Dewison]

I’ve only give credit to customers that have a good trading record with me, ie they’ve ordered at least 3 times and the invoice has been paid straight away. Even then I limit the amount they can have.

The only time I strayed from this, I ended up with a debt, not massive, only £60, but a debt all the same. I always ask for a deposit, whether it offends or not, if you go to buy a car they expect a deposit, rent a house you need a deposit, so if they’re offended – tough chips in my book!

One of the standard ways to establish credit worthyness (is that even a word?) is to have an application form that asks for all the companies details and then insist on a minimum of 2 current trade references (ie 2 companies they buy from that are willing to provide a reference). Then you either write or ring those trade references (if its a company you’ve never heard of, a phone call is a must, just to be sure). The other thing is that you establish what credit terms they actually want. If they want £5k, its doubtful you’ll want to offer them the facility.

Hope this helps anyway,

Cheers, Dewi

[Kevin.Beck]

thanks evox.

Found just what I was looking for.

Dewi, I do the same as you, if they have traded with me before and I`ve not had problem, I`ll wave the deposit.

Up to yet I`ve only had 1 customer take me for money, that was when I first opened the shop.

At the moment I`m chasing a customer for £200, hes been buying off me for 3 years. He must have spent £2K in that time. I can`t get him to pop in and pick up his stuff, been calling for 2 months. he always gives excusses. Hopefully he`ll be in on Monday…….So just because they`ve paid before doesn`t mean they drop you in the sh1t.

[Bill Dewison]

I’ve found exactly the same thing. One of my most long standing customers owes me a little money atm, bizarrely enough, also £200. They’ve had a difficult time getting going (new start business) so I’ve waited a little while for payment, but it has stretched on for quite a while now.

When you get a new customer, do you take a deposit at the design stage or do you do the design first and then ask for a deposit when they agree to the work? I have always done the latter, but recently I’ve found that the designs have become more and more time-consuming as I have been selling alot of window graphics in a particular style. I’m considering asking for the deposit before I do the design, good idea or bad? 🙄

I’ll have a look for the credit application forms at the shop which I’ve had from different suppliers if you want Becky, they may be a useful guide to setting something up.

Cheers, Dewi

[evox]

The only problem with asking for a deposit before you do a design is the customer has probably been to four other places before you! I recently had a call from a local letting agent who needed a sign and some letting boards, i sat there for two hours withhim only to find out i was the seventh
signmaker he had asked for a design from and he also had two more to see after me! what chance have you got??

[John Harding]

Guys – My way is to ask for new clients to pay at least a deposit up front perhaps the whole thing up front if you are suspicious about them, let your instincts guide you – it hasnt put me far wrong. 😕

As for design work give a preliminary price and design for free but dont spend too much time on it, point out its only an outline to be expanded upon/developed on conformation of order and receipt of deposit!

as for credit only give it to those you trust and price accordingly, I always prefer giving small a discount for cash.

John

[Kevin.Beck]

we take a £30 fee for 30-45 mins of design time for the layout of the van or sign.

That fee or part of it is deducted from the final price of the goods.

if they don`t want to proceed or change their minds about the van or sign, that way we have not lost out.

[signworxs]

I usually take a deposit at the sketch design stage (yes I still do preliminary designs in sketch form) where there is a spec box with basic information and a customer acceptance signature is required before going on to detailed design, in this box it also states that a 25% deposit is required at time of signature. On my detailed design sheets I have the normal spec box in the bottom right corner but in the bottom left I have an approvall box. Basicaly the customer signs that the sign specs are correct and that all spellings have been checked prior to manufacture. This elliminates any problems later if they say ” thats not what I asked for” 🙄