We get a lot of questions regarding accounts receivables and collections from our clients.

One recent question to one of our team members was about what happens to the collection process after your Net 30 Payment Terms.

Our first question to you is do your customers actually know you have Net 30 terms? Have you told them, inserted it in all your invoices and statements and maybe even posted it in your waiting room or lobby? Make sure you do this first.

Second, when you do get to that 30-day mark, a good way to open the lines of communication is to place a customer service call. Find out if your customer was happy with the service that was provided and bridge into that topic of the overdue amount.

Over the next 30 days, try to call at least two more times and make sure you have issued a statement. If you have not received any communication back or of course the payment owed, it may start to become clearer that you have an issue.

At this point, it may be time to employ a collection agency. While we always want your business here at American Profit Recovery, make sure you find an agency that you are comfortable with and that you can work with. And make sure they know your industry. Here at APR, we have many members of our staff that have spent time in the industries we serve.

We recently created a short video about how to tell if a customers is not going to pay. You can check that out here.

 

Do you have other questions? Check out more of our blog and our YouTube site for answers to many of your questions.