How Can Your Business Collect?
What makes a business successful, you might ask? The answer is clear. Money. And when the going gets tough, businesses without invoicing and any system to collect debt tend to feel the pressure. It is a simple fact that any business that provides credit to its customers must send them a bill as soon as it is possible and have ways to ensure that accounts are collected on time.
First and foremost, any business needs a systematic way to ensure that its invoices are paid within its trading terms. This includes a record that needs to be signed, setting out the trading terms. These include when the company will invoice, when payment must be made, and what the repercussions of not paying an account by the deadline will be. Among these consequences might be an account keeping fee that is charged once an account is past due for a set amount of time, a hold being put on goods or services and a final deadline by which time the account will be sent to collections.
These trading terms should be signed and retained in the customer report. There will also have to be administrative systems in place to guarantee that the company's invoices are sent out according to its policy. Business owners should never let fear of losing a customer get in the way of having a debt collection policy that is efficient.
The next thing to focus on is a debt collection system that is centered on personal contact rather than statements and letters. Experience proves that collection is more efficient when customers receive phone calls instead of threatening letters. The first step is a telephone call to customers who haven't paid their bill within the terms that they signed. The phone call should be scripted and timely; within a few weeks of the account becoming late. From the beginning, the person making the call has to announce that there was nothing wrong with the services or goods that were supplied.
If there was, it should be addressed immediately and a new payment date should be agreed upon. If the bill is still not paid by the next deadline, make another call letting the customer know that the account keeping fee will be charged, and that if the account goes past the next deadlines, supply will end and collections will begin. As far as debt <a href="http://www.rapidrecoverysolution.com/Collection_Company.html/">collection companies</a>go, an company that works on a no collection, no fee policy is usually the best choice.