Receivable management is easily one of the toughest and most annoying areas of business management. Honestly, who likes running after clients to collect money even if it is what they owe you? However as much as you would like to keep away from such clients, you cannot afford to; the fact is you need the money they owe and technically, it belongs to you after all. So here is how you can prepare yourself for this task if you don’t outsource receivables management.
- Remember You Are Dealing With People– No matter how bad things look, it helps to remember that you are dealing a person or a group of people. You can work them so that you get your money. It helps to remember that harsh words and threats may not help your cause; you have to appeal to their humanity, provide proof and if all fails, proceed through legal means.
- Eyes on the Goal– The goal in this case is, of course, the money that is owed to you in your bank account. Do not think about the number of times you have had to call the client or how many false promises he made; your focus should be on getting the money, so ready yourself for ample resistance and work steadily towards your goal.
- Make That Uncomfortable Call– Be prepared to make that uncomfortable call that you just dread. Contact your client till you get a response. Every month, go over the list of overdue payments and decide how you will approach them.
- Get into the Mind of Your Client– The most effective way to get your clients to pay is to touch their emotions; they are after all only human. Involve them emotionally so that they feel compelled to make the payment.
Receivable management is not easy; it is time consuming, annoying and sometimes fruitless. If it seems like too much work, you can always outsource receivables management. Outsource receivables management firms are good at what they do and know how to figure out what makes your non- paying clients tick. By involving such organisations, not only do you get your money back, you are also free to focus on your business and attend to core business tasks.