Importance Of Standard Operating Procedure Or SOP
Just received a query from an acquaintance on how to collect Debt.
Perhaps I share some simple tips here…
My further probing revealed that there was no official purchase order from the customer, no contract nor Letter of Engagement ( LOE ) signed or Sales Invoice ever issued for services rendered.
Everything was transacted via Whatsapp !
Legally speaking, there was no Contract entered into for the provision of services or goods at an agreed Consideration.
Without a Sales Invoice, that means legally speaking, there was no Demand for payment.
Such business transaction would not stand in court should client fail to pay.
I advised this acquaintance to have an LOE endorsed every time a verbal agreement was entered into either via telephone or Whatsapp or email.
An official Sales Invoice needs to be issued with agreed Value and Payment Term.
This is a fundamental SOP a business needs to have in place to protect yourself.
Hope this little tip helps.
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