Are you Running Around Like a Headless Chicken?

I was a fast sprinter in my younger days. As a result I would do well in sports that required speed, but not so well at football. I wasn’t a technically gifted footballer; I would waste my energy running around like a headless chicken chasing the ball. I didn’t score that many goals because I worked harder than the ball, ‘let the ball do the work’ my football coach would say. If he were to give advice to a business he would say ‘let the money do the work’.


Let the money do the work
How do you let the money do the work? Simple you make sure you have procedures in place
that avoid the business from running after money, wasting your time, energy and cost.
Do not offer credit without first inviting the customer to complete a credit application enabling
you to credit check them so that you can be sure that they are good for it. Know your
customer, if it is a franchise who is the franchise owner, if a company, do not take their word
for it ask for their company registration number, if a firm who is the sole trader or partners.
Track the risk of your key accounts. Have a set of comprehensive terms and conditions that
ensure you have conditions in place that will help sustain cash flow.
Do not waste money, time and energy on debts below £400
I make it a rule not to issue legal proceedings for debts below £400 because the court fees
and costs of enforcement are disproportionate to the debt. How do I help businesses that
have exposure to debts below £400, simple I tell them not to offer credit unless the customer
wishes to open an account and give repeat business. Alternatively for one off business, for
example tax returns with accountants I offer a Credit Card Authorisation Form. As a result
the customer supplies their credit card details as security against the work. There are 30
million credit card holders in the UK, so if a customer doesn’t have a credit card you can be
pretty sure they’re not good for credit or do not have a credit history.
Do not run your business on principles
If a debt isn’t worth pursuing, I will tell you it isn’t to save you from throwing good money after
bad. In my experience a good business is not run on principles, it’s run on cost versus
reward. Where is the reward in paying a solicitor £2,000 to recover a £2,000 debt when you
are not entitled to costs, conversely where costs are recoverable where is the reward in
paying a solicitor £6,500 to recover a £10,000 debt when the debtor has a net worth of
Run your business by my rules and everything will happen on time, you will allow business to
come into your life that is good not bad for you. If all else fails and you require my debt
collection services you can trust my judgment.
If you wish to discuss any of the above or are in need of Credit Management or Debt
Collection expertise call me on 01920 891547 for a free one hour consultation.


Carlo Pegna


LL.B (Hons), F.Inst.L.EX MICM

Tel: 01920 871547
Mob: 07899 993 191



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