Avoiding clawbacks
Clawback occurs when a new customer fails to pay their first three Direct Debit payments or a client that you brought to Everflow ceases to take our services within the first full year of the contract or renewal contract, from the contract start date.
In most cases clawback is caused by circumstances beyond your control, especially in the current business climate, with there being so many trend-driven start-ups – i.e. dog groomers, nail bars etc. These types of opportunities are high risk to you, as our data shows the failure rate on these is high, so it is always worth considering this risk in the first place.
One situation that you can control is when clients are calling Everflow directly to add new sites, change business name or change entry type etc. In order to stop this from happening and causing you a clawback, simply make sure that your client brings any change to their contact through you. By doing that, i can advise you of how to make the change without you losing out.
Once we introduce Dynamic Pricing to our broker software, it will increase the number of contracts that we can accept and take onboard. This is a benefit to you, but ultimately you need to decide whether to risk clawback on each customer that you bring to Everflow.
