Gravity Debtors Management Masterclass – Lesson 5

Points to Ponder

Key point covered in this lesson:
• Making Time or making a change
• Vetting Customers
• Tips that work
• Don’t do this
• Useful resources


Making Time or making a change

The fact is that it takes time to do invoices and debtors follow ups properly. Consider whether you have time to do this. Business wonders often go off in a panic to find more work when cash flow is not what it should be. Very often the problem does not lay with the amount of work at hand, but with the rate at which they are getting paid. 

Having a solid system and the capacity to drive it is key to getting all the money you work for. If you know that capacity or efficiency is the problem, it might be time to either acquire more resources, or outsource the function to the professionals who do it every day. 

There is nothing wrong with using a debt collection company to assist with running your accounts. This leaves you with time to focus on the work while they take care of making sure the bad payers are kept on their toes. 

Credit management companies like Gravity can also assist you with creating terms and conditions that allow them to charge penalties on late payment directly from the customer who defaulted, meaning you get everything you are owed without deductions.


Vetting Customers

Many business owners might argue that it is not easy to say no to work, but the fact of the matter is you can afford not to do work for customers that can’t or won’t pay you. Technology has made it a lot easier to know who you are dealing with and it is possible to make use of credit reporting services, especially with big contracts and large amounts, to make sure you know who you are dealing with. 

You can also check the Companies Offices Registrar to see when the company was first registered and who the owners are. Information on the directors are and what other companies they are involved with.  If a company is in administration or in liquidation, or any of its related entities are, it might be a good sign to steer clear of offering credit. 

Check online what people are saying on social media and Google reviews. It is quite common for disgruntled people to retaliate with bad reviews, so having a couple is pretty normal. But if 20 people are making the same complaints or allegations, you might want to consider what implication it might have on you. Those bad payers with you are often bad payers with others. To them it makes sense to use your money and not theirs.

At this point, when everything else checks out, you can also take the time to make sure that you have the correct contact details for the customer and that they are reachable on those details.


Tips that pay

Don’t do this 

Useful resources

Ministry of Business Tools and Resources page

New Zealand Companies Office

New Zealand Trade & Enterprise Resource Page

Auckland Business Chamber Free Resources and Online Tools


Some Useful Reading






Lesson: < 1 2 3 4

Privacy Settings
We use cookies to enhance your experience while using our website. If you are using our Services via a browser you can restrict, block or remove cookies through your web browser settings. We also use content and scripts from third parties that may use tracking technologies. You can selectively provide your consent below to allow such third party embeds. For complete information about the cookies we use, data we collect and how we process them, please check our Privacy Policy
Consent to display content from - Youtube
Consent to display content from - Vimeo
Google Maps
Consent to display content from - Google
Consent to display content from - Spotify
Sound Cloud
Consent to display content from - Sound