you can do as a business to make debt collection less
wish to recover additional costs from your customers in the event
they do not pay for goods and services you provided you must inform
them of these additional costs when they agree to the supply of
goods or services.
1. Display a notice clearly informing customers that
they will be liable for collection fees and late payment
they do not pay for your services by the agreed date;
2. Provide customers with a written explanation of you
terms of trade when they order your goods or services. It should
clearly explain that custmers will be liable for collection fees and
late payment fees
if they don't pay within the specified
Have customers endorse cheques agreeing to be liable for
collection costs should the cheque be dishonoured.
statement on an account sent after the service or goods have been
provided is not enough to enable you to demand these extra
If you need any further advice on debt collections or the
above statement please contact
me. My advice is free.
Note:This information comes courtesey of the Commerce
Commission and makes reference to your obligations under the Fair
On a not so serious
for you past bills
customer sent an order to a distributor for a large amount of goods
totaling a large amount of money.
distributor noticed that the previous bill hadn't been paid. The
collections manager left a voice mail for them saying,"We can't send
your new order until you pay for the last one".
next day the collections manager received a collect phone call from
the customers saying, "Please cancel the order. We can't wait that