Business-to-business debt is a sensitive issue to resolve. When a business becomes a client, there’s a good chance it will be a recurring customer, resulting in weekly or monthly revenue. But just like individual people, businesses are sometimes late to pay on accounts.
Delinquent accounts are frustrating, but you want to collect the payment without risking the long-term relationship. This is why we have released a video on the most important factors for resolving business-to-business debt, preserving a source of recurring revenue for you and your company.
A few points to consider before we get to the video:
- Diplomacy: Companies often bring repeat business. This means business-to-business relationships are often long-term accounts. This makes diplomacy vital in the collection process, since you’re not just dealing with a late customer but a consistent source of revenue.
- Information: When you deal with individuals, you should collect as much information as possible. It’s no different when your customer is another business. Find out as much information as possible on their credit-worthiness and learn whether they’re a corporation or DBA. Get a singed guarantee if possible.
- Affordable agencies: American Profit Recovery offers a low-cost collections system, which saves you money when collecting on late accounts. We have other programs for more stubborn accounts but this is a great starting point and one that very often gets tremendous results
- Saving resources: Hiring the right agency and one that is affordable like we just mentioned can go a long way in preserving internal resources and costs. Your staff can focus on the customer and the collection agency can focus on resolving late payments.