How to recover credit in feed industry?

How to prevent the accounts sold on credit in feed industry from becoming bad debts? -Guangdong Deke Law Firm gives advice and suggestions ■ Text/Liu Jinshou Abstract: With the increase of credit sales business in enterprises, the risk of credit sales has become an eternal pain in the hearts of enterprise management authorities. How to strengthen the management of credit sales, recover funds and reduce credit risk cannot but attract enough attention. This print tries to discuss with Guangdong Deke Law Firm from aspects of strengthening prevention beforehand, control beforehand, improving measures in the process and strengthening management afterwards. Default in payment for goods is a difficult problem faced by many feed enterprises. Many feed dealer bosses come from rural areas and have no capital base. In the early days of engaging in feed business, they generally lacked funds and needed the support of feed enterprises. Many feed enterprises suffer from competition. In order to open the market and occupy the market quickly, they will sell a certain amount on credit, and at the same time sow the seeds of paying risks. Generally speaking, there are two situations: some dealers are not doing very well and do not have the funds to pay their debts. So, how should enterprises respond? If the cooperation is stopped and the debts are recovered, the dealers will have no chance to turn over, and of course, they will not be able to pay off their debts. Of course, credit sales issued by manufacturers may also hit Shui Piao. Therefore, in order to recover debts, manufacturers should consider how to make dealers have the ability to pay debts, so they can only continue to sell blood to dealers on credit, resulting in more and more credit. Later, dealers can even "make manufacturers owe money", but they can't do it without credit, so they can only continue to credit, that is, the more credit, the more embarrassed the enterprise is. In addition, some dealers are doing well, but due to the need to continue to expand their business scale, they need to further increase their investment, hoping that the arrears of manufacturers can be eased. From the perspective of the stability of distribution network and market expansion, manufacturers often give some support. In addition, due to the lack of effective management of accounts, many a mickle makes a muckle, and it is deeply mired in credit. Therefore, many friends in the industry joked: "If you don't sell on credit, the products will not be sold, just like waiting for death. If you sell on credit, you can't get back the payment in time, which is equivalent to asking for it. " You can't have it both ways. Selling on credit is a double-edged sword. How to reduce the cost and control the risk of credit sale as much as possible on the basis of making full use of the functions of credit sale to expand sales is a problem that all enterprises must face seriously. Measures should be taken to control the problems caused by credit sales from the following aspects. 1. Strengthen prevention and control beforehand. In order to minimize the risk of payment, it is necessary for the marketing department to conduct credit investigation and credit rating evaluation on retail customers before selling on credit. Carrying out credit evaluation on customers can eliminate those customers with poor credit on the one hand, and set a "credit limit" for customers on the other hand, thus ensuring the safe recovery of payment. The customer file shall include the following contents: basic customer information (customer's business status, customer's financial status, personal information of the person in charge, fixed assets, business license issued by the industrial and commercial department within the validity period, production license filed by the agricultural department, etc.). ), customer credit information, credit sales contracts, past transaction records, etc. When signing a contract with an individual customer without industrial and commercial registration, a copy of the customer's ID card should be kept as an annex to the contract; Individual customers don't sign the contract or pay immediately, but they should also leave a copy of their ID cards. Of course, when signing a contract with an enterprise with industrial and commercial registration, the enterprise customer should stamp it; For customers who don't pay immediately, they should place an order or stamp the receipt when ordering. But most suppliers often ignore this link. Because the collection, collation and analysis of customer information is not as urgent as the sales task, suppliers often do not have a comprehensive understanding of potential customers in advance. Once the business starts, it is too late to do in-depth understanding, so we can only make a transaction decision in a hurry based on some information, which also leaves hidden dangers of payment risk for the future. Now that the transaction has been concluded, we have not collected customer information specifically, and we have stopped supplementing and dynamically tracking customer information, and missed the opportunity to take remedial measures. Once it becomes a bad debt, we will regret it. Many suppliers have thus fallen into a vicious circle. Only by fully understanding the customer's financial situation, market network, sales ability, organization and management, and establishing a scientific and effective evaluation standard model and early warning mechanism can we accelerate the collection of customers' accounts receivable and effectively reduce the bad debt rate. Here, lawyers from Guangdong Deke Law Firm introduce us to several real cases in the industry. There is a well-known dealer in Shunde, who has been using the means of empty gloves and white wolves, and has been planning to profit from the credit sales policies of other enterprises. He never seems to care about the way of payment, and he is sincere and generous. He patted his head and chest and agreed to any payment terms. Finally, when the contract expires, he often puts forward some unexpected terms. On one occasion, a feed factory in Nanhai laid 6.5438+0.2 million yuan of feed at his place. At the expiration of the contract, he asked to continue to increase the credit line to 6.5438+0.5 million yuan, otherwise the settlement would not be made, which put the cash-strapped manufacturers in a dilemma. But the manufacturer finally gave in, only hating that he was subject to others. There is also a briber. This kind of dealer is affable and enthusiastic to everyone, especially the backbone salesmen and department leaders whose opponents hold power, who are even more intimate, with a small invitation every three days and a big invitation every five days. When the critical moment came, they looked miserable. "Brother, money is tight these days, can you ..." Even the enterprise personnel are dragged into the water, and a "confused account" or "fake case" is made to get rid of the relationship. In Wenchang, Hainan, there was a scene in which dealers colluded with salesmen to defraud enterprises of payment. Dealer A secretly assigned Mr. B to play the role of a farmer, and instructed Mr. B to call salesman C to deliver 10 tons of feed to Mr. B's pond head, asking Mr. B to explain the unloading place on the phone, but not to sign for it himself. Salesman C believed Mr. B's words out of his friendship with dealer A for many years, and unloaded 10 tons of feed at the pond head designated by Mr. B. As a result, the feed disappeared, and neither Party B nor the dealer admitted to receiving it. Finally, the company reported the case and found no results. The matter went away. A year later, dealer A and salesman C started business cooperation. Job-hopping dealers are also annoying. In order to escape, such dealers often change their names and surnames, change their legal representatives, and even transform into other businesses. The owner (or) legal representative either "goes on a business trip" every once in a while, or changes people in a year or so, leaving you nowhere to find, and the responsibility lies entirely with your predecessor; Even the original fund handlers or financial personnel quietly left, and there was no news. Newcomers are responsible, and they don't recognize the account because they don't know. What's more, the brand, business content and legal representative of the store are unrecognizable. You can't find this person, and your money and things are gone. In view of these actual situations, some enterprises with standardized management often divide old customers into four categories. The first category pays in full and on time during the credit period. These customers are excellent customers of the company, and the credit line for them should be gradually improved. The second type is payment after the credit period expires, which is not bad for such customers. The third category is that after repeated reminders or even threats, the payment will be made after the credit sales expire. You should be careful of such customers. The fourth category is malicious offenders. In the end, even the arrears can only be recovered by legal means, or they cannot be recovered at all. For such customers, it is better to give up as soon as possible. Many salespeople think that it is difficult to sell now and they can't give up every customer. If they give up, they will run to their competitors. In fact, we can consider the problem from another angle. Who will benefit from "expelling" customers to competitors like the fourth category? In addition, the sales contract signed between the salesman and the customer needs to be strictly examined by the contract manager of the enterprise and approved by the person in charge of the sales business before delivery according to the contract, and delivery without contract is strictly prohibited. 2. Improve control measures As we all know, aquaculture is a high-profit and high-risk industry. At present, Quito, a free-range household, is the main household in China. The breeding technology of farmers is indeed limited, and most of them still rely on the weather to eat, so the breeding risk is quite high. Some farmers think that with the high credit of feed, the problem of funds will be solved temporarily, and the scale of production will be blindly expanded, while the breeding technology and management level are difficult to keep up. It is difficult to ensure the output and the profit is even more unpredictable when encountering natural disasters. Many bad debts of enterprises killed in the feed market are mostly caused by this. If selling on credit is inevitable, how to reduce the risk? First of all, one pays attention to credit sales skills. Hainan Company C is a medium-sized feed enterprise, which has entered the Guangzhou market for several years and occupied a certain market share in the local area. The sales strategy adopted by Company C is different from that of feed enterprises that have just entered the market. In order to stabilize the development, when signing a contract with a distributor, the maximum amount of credit sales shall not exceed 30% of the payment, and it shall be settled at the end of the lunar calendar. Some insiders believe that this sales method is a relatively stable method at present. Based on the current feed calculation, 60% of the cost is formula cost, and 65,438+00% is enterprise marketing cost (including labor cost, land rent, equipment depreciation, etc.). ), 15% is the profit of the dealer and 15% is the profit of the enterprise, which is considered as a balance point. Secondly, regularly analyze the time for enterprises to recover credit sales, some of which have not exceeded the credit sales period, and some have expired. Generally speaking, the longer the overdue period, the easier it is to form bad debts. For each overdue account, corresponding collection methods should be adopted. In addition, establish a bad debt reserve system. No matter how well the enterprise's loan recovery policy is formulated and thoroughly implemented, under the market economy conditions, the loss of bad debts is still inevitable, some because of the debtor's major natural disasters, some because of the debtor's bankruptcy, some because of the debtor's sudden death, some because of the debtor's involvement in litigation cases, some because the newly implemented laws and regulations are unfavorable to the debtor, and some because of the changes in market supply and demand and the oversupply of goods, which lead to the temporary or long-term deterioration of the debtor's financial situation. All these will lead to some or all of the credit sales can not be recovered. Therefore, according to the principle of financial prudence, the risk of bad debts should be reasonably estimated according to the overdue degree of accounts or the total amount of credit accounts, and the bad debt reserve system should be established. When bad debts occur, the withdrawn bad debt reserve will be used to offset the bad debt losses. Before the credit account expires, we should pay close attention to customers and establish a regular reconciliation system. It is necessary to formulate a standardized and regular reconciliation system to prevent the funding gap between the two sides from snowballing, resulting in bad debts and bad debts. At the same time, a legally binding document should be formed after reconciliation, not a verbal commitment. Establish a regular reconciliation system, the supplier sends a reconciliation letter to the customer every month, and the business personnel obtain the signature of the financial department of the other party to ensure that the payment amount is correct. At the same time, always pay attention to the danger signals, and selling goods on credit requires regular management and service. Once you sell goods on credit, you must pay close attention to the customer's business situation, keep a high degree of vigilance against some bad signs, and don't ask questions before the credit period expires, otherwise it is likely to "draw water with a sieve." When the customer's business situation is not good, there are often some dangerous signals. In daily visits, marketers should take checking the operating conditions of customers as their important work. Because there are bound to be some signs before the risk of payment occurs, we should closely observe and try to find these dangerous signals, which will have a warning effect on the safety of payment, and then take prompt action accordingly, which can effectively reduce the operational risks brought by customers. 3. Strengthen the management of collection afterwards. What should the enterprise do if a customer fails to pay the credit payment within the time limit? First of all, it is very important to understand the reasons for customers' late payment. The first is to clarify the reasons for customers' overdue payment. Self-management mistakes. Mainly, the salesmen settle accounts privately, give customers a certain number of installments or collect forward bills. In many cases, the sales method is "cash on delivery", but the customer can't pay in time after the goods arrive, and the invoice is not sent on time. This contract is full of loopholes. When signing a contract with a customer, there are loopholes in the specific operating terms of the contract, which makes the customer find an excuse for breach of contract. For example, if the inspection period is not stipulated in the contract, the payment clause of the contract reads "Payment after the goods pass the inspection". However, customers often delay payment on the grounds that the goods have not been inspected, resulting in overdue accounts receivable; There is something wrong with the product quality. Customers often use "quality problems" to delay payment. If the customer's problem is not solved, many times, because the customer's problem is not solved well, the delay of communication will also affect the customer's payment speed; There is an error in the delivery link. Due to their own reasons, there are mistakes in the logistics link, which are manifested in the wrong delivery, untimely delivery or damaged goods, resulting in delayed payment by customers. Second, understand the external cause of customers' late payment, that is, "I owe you nothing to discuss". To solve such problems, it is important to increase the pressure step by step, and give him enough pressure through communication with the other party's superiors or through the relationship between the government and friends, and finally recover the accounts; Capital turnover is difficult. Because of its poor management or its own customers' default, customers also default on their suppliers in order to transfer the capital risk, so they will delay payment or refuse to pay on the grounds of "difficult capital turnover"; The goods cannot be sold. With the change of the market, customers can't sell their own products or customers and suppliers can't sell their own goods, and so on, and customers will find excuses to breach the contract. As a salesperson, you should not only have superb sales skills, but also do five things to collect money. "Fast": quick response to unexpected things; "Diligence": the frequency of reminders should be high; "Sticking to people": not easily agreeing to customers' requirements, and making timely repayment commitments for loose ones; "Entanglement": the negotiation with the debtor should be approached step by step; "Force": directly exert pressure on customers' weaknesses and appropriately raise the pressure level. Collecting money is a psychological contest. If the salesman is psychologically afraid of difficulties, he thinks that the customer will not receive the money before entering the store. In this way, even if the customer originally intended to pay, he could not receive the money because the salesman was not determined. When dunning money, if you can be confident and assertive, you can often win by surprise and recover the hopeless debts. On the contrary, it will be led by the other party, and the payment that could have been recovered may not be collected. Be reasonable, be favorable, be restrained, don't lead to deadlock or confuse the relationship, make your reasons clear and convince customers with sufficient reasons. The lawyer of Guangdong Deke Law Firm told us to determine the appropriate debt collection strategy. First, use scientific methods to estimate the collection cost and collection success rate, and weigh the gains and losses between increasing the collection cost and reducing the bad debt loss of accounts receivable. Second, enterprises should take different collection measures for accounts with different arrears and customers with different credit quality, such as letter notification, telephone collection, interview and legal action.