Dave I'm not sure what line of business your company is in but I would advise the use of a domicilium address in your credit application form to facilitate the service of the summons on the debtor while your attorney is tracing the whereabouts of the debtor and the early default judgments will also result in the listing at the credit bureaux.
I agree with Brett - we make extensive use of a domicilium address in credit application which means that a summons could be served at that address (being the chosen domicile address of the debtor) regardless if he/she still lives there. But that's only the first problem solved (the easy one). The nitty-gritty usually comes in when the debtor has moved and you want to proceed with executionary steps such as a warrant of execution etc. Then the domicilium address will not be of any help and you first have to trace the debtor in order to proceed, but at least at that stage you would have obtained judgment against the debtor.
The trick would be to get a signed off chosen domicile when there is no intention to give credit. It can be a bit of a challenge in the service industry.
You get this instruction to do the service, send the invoice and I'll pay the money by internet transfer within a couple of days type of thing going the whole time. Quite often, you never even get to physically meet the client.
Lately we've been insisting on a faxed instruction, but some people take exception.
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Dave, it seems a catch 22 in your case. If I were you I would draft a pro forma instruction detailing the work to be done and the price (and any warranties on the work and/or services done) together with teh domicile clause and have that sent to the clients for signature. In such a way you cover both parties: you on teh one side as you have some leverage and the consumer as the "document" serves as his/her warranty for work done etc. If you explain it in this manner to your clients, you would not be stepping on toes.
Thanks Eugene. That's pretty much what we are doing nowadays.
It takes a bit of discipline, though, to not proceed with the work when the paperwork hasn't been done. A fairly regular problem is that the client undertakes to be present to sign the paperwork when we arrive to do the work. And then when you get there, there is only a domestic servant present. And of course everyone is screaming at you to get the job done anyway because it is urgent.
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Morning Everyone,
I have a family business for appliance repairs ... washing machines, fridges, ovens ... that sort of stuff. We have a lot of customers that haven't paid us and all we can do is to send email and sms reminders ... the emails are free, but the sms's cost (not much, but, still a cost). I would like to know what I am allowed to do in order to "blacklist" a customer for not paying or verbal abuse or threatening with a gun for no reason what so ever.
I am thinking of starting a web site where one can blacklist a customer and share this data ... and other service providers can check to decide if they want to take a risk, repair and not get paid or simply tell that customer they are blacklisted for not paying.
Am I allowed to do something like that?
Regards,
Bing0
I don't know how anybody can give credit anymore, especially in your case (as is mine) Bing0
I have about R250k worth of bad debt on my books. Problem is, it's a R3k here and a R4k there. Obviously we were too lenient, but that is water under the bridge.
i have found that as a business owner have no recourse to collect money. You send reminders (sms costs, time, etc) then you send lawyers letters (lawyers cost). If all that fails, you take him to court (R1k as per my lawyer). Now he says to the honorable, that he can only afford R250 per month. Good, settled. At least I get something back, right? Then he stops paying again, and I have to drag him to court again...
As Business owner you also cannot claim at small claims court...
This will be my downfall...
Hi Hannes for credit the latest trick that worked for me was to the restaurant that owed R4k and there was a new manager. So I asked does she know if there is a problem as payment for the menus done in November hasn't been paid. Then emailed the manager and asked the same question and was paid an hour later.
But if they ask for menus again then it is payment with order.
We also have a "blacklist" of customers on the wall so if they ask for quotes then it is payment with order.
Now any new customer is a minimum of 70% payment with order.
Only stress when you can change the outcome!
BCM Credit Risk Solutions are good, chase payments and deal with legalities and black listing. See if their monthly consulting fee for a small business is viable or not worth it for your situation.
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Problem is: My customers ask me to help them so that they pay, say a R1800 bill at the end of the month. Then pay on time! GREAT! Next time it is a R3200 bill, and they pay half now and half end of the month. Then pay on time! GREAT! Next time it is a R6700 bill. Can I pay it over three months? And since he has built up a report with me, I allow it. Then the stories start: I'm unemployed now or one of my taxi's broke so I can't pay you this month. Then you usually resort to whatsapps and sms mixed in with some guilt tripping and name calling.Originally Posted by IanF
Luckily, I am part of a franchise. They have decided to launch a finance division. Where I send applications to them, they approve or deny applications and once the work is done, they pay me, and get the money from the customer. Of course, this won't help me recover anything I've lost...
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