For small business, debt recovery is a major issue. This is especially stressful when margins are tight. Understanding how to deal with late payments and debts is crucial to managing a company efficiently. In order to prevent late payment issues, you can take a number of steps. The first one being conducting background checks on customers. This will ensure you …
Business Referral Agreement
When a business is collaborating with another business to provide referrals, it would be smart to outline the agreement with a Business Referral Agreement. This agreement delineate details including: How much?, When?, and How the referrer will be paid? This type of agreement can help support the development of your business. For more information on Hong Kong business, get in touch with …
LATE PAYMENT LETTERS
Sending late payment letters is a useful way to chase overdue invoices. Sending this type of letter should prompt the customer to pay the overdue amount. If the debt remains outstanding, you should send a second payment reminder letter at a time you deem reasonable, taking into account the number of days you have given the client to repay the debt. If the …
CONSIGNMENT AGREEMENT
If the supplier of a good wishes to retain ownership of the said good when it is being sold by another party, a Consignment Agreement is necessary. This document is specially created for the instance when a consigner (person or a business) entrusts goods to a middleman for the purpose of selling goods to an end customer. In this arrangement, the consigner typically does not pay the …
ISSUE INVOICES ON TIME
ISSUE INVOICES ON TIME Getting the money owed to you is key to surviving the start-up phase. An invoice breaks down the costs provided, the total amount due, and how the customer should pay for their received bill. By using an invoice, you can keep track of who has paid, who has not paid, and the condition of your cash flow. Invoices provide a …
ALWAYS CONFIRM A SALES ORDER WITH A PURCHASE ORDER
Purchase Order Document While the Supply of Services Agreement and the Sale of Goods Agreement outline the basics of how to do business, a Purchase Order and Invoice takes care of transactions. A Purchase Order is a document that confirms the purchase between a client and a supplier. It describes the items the buyer agrees to purchase at the price it …
DISTRIBUTION AGREEMENT
Distribution agreement Besides the sale of goods and the supply of services, there may come an opportunity to collaborate with other companies. There may be the issue that they are not under the same agreements that your company is under. To make sure everyone is in agreement and knows their expectations, you should create a Distribution Agreement to set out …
CAN I REGISTER A LIMITED COMPANY USING THE WORD “ASSOCIATION” IN THE COMPANY NAME?
Limited company CAN I REGISTER A LIMITED COMPANY USING THE WORD “ASSOCIATION” IN THE COMPANY NAME? YES! You can register a Limited company with the word ‘association’ in the company name. This will be seen as a normal Hong Kong Limited company, limited by shares. Further, if you are planning to setup a ‘group’, that is not a Hong Kong …
DRAFT PAYMENT TERMS TO IMPROVE CASH FLOW?
Improve cash flow There are three steps you can take to create payment terms that will improve your cash flow. The first is to negotiate payment dates to align inflows with outflows. By creating a time slot in which your customers must pay, you can almost always ensure an on-time payment. An example could be, how to do this is …
IS HONG KONG DEBIT CARD INTERNATIONAL?
Can you use your Hong Kong Debit Card internationally? A debit card, also called ATM card, is simply used to withdraw cash, pay by card and in a few cases pay online. Although most of the time, you need a credit card for online payments. A debit card is granted at opening your personal/professional bank account. You are freely able …