Delinquent accounts can be a severe problem for many businesses. Fortunately, there are plenty of measures you can take to prevent late or wayward payments. This collection agency steps in when you are ready but there are a number of things you can do in your business before you involve us.
Here are some tips to help you get paid on time:
Set up a process: You need to have a process in place before your customer even walks through the door. Everything from payment plans, to due dates, to how you handle late payments should be planned ahead of time. Be sure to include a contract or signed agreement in the process, and obtain plenty of contact information. There should be a mutual understanding between the business and the customer.
Follow the process: If a customer is late with a payment, respond according to the planned process. The situation will only get worse if you ignore it, and more often than not, a simple phone call will do the trick. So go ahead and reach out to them, be friendly and courteous, get some feedback, and remind the customer that their payment is due.
Seek help when needed: Even the best process can come up short every once in a while, and when that happens it’s time to bring in a reputable collection agency like say….American Profit Recovery. Make sure the agency you choose (hopefully it’s us…) shares your own beliefs about payment collection—if diplomacy between your business and the delinquent account is important, be sure to pick an agency that also values diplomacy.
For more advice see our new video on improving cash flow.