Collecting payment from customers especially delinquent ones can be troublesome. You never know why your client isn’t making the payment, so it is in your best interests to not antagonise the client. All this is why account receivable solutions companies recommend handling payment collection with care. Here are some simple dos and don’ts of AR collection.
- Begin Collection Efforts As Soon As a Sale or Agreement is Made– Your customer owes you money as soon as you deliver the service or product, so collection attempts should begin at the earliest. However it would be wise to not bring up the topic of payment immediately, but rather get to it during a feedback call or courtesy call after delivery or completion of task.
- Document All Collection Communication– All account receivable solutions businesses unanimously agree on the fact that all collection communication should be documented. This serves as tangible proof of your collection efforts. It has also been proven that when you contact customers repeatedly concerning payment, the chances of you getting the payment is higher.
- Keep Your Calm– Payment collection is sensitive business. You, as a business owner, don’t like having to run behind money that you are owed, and your client can be pretty touchy about it as well, which is why emotions and tempers can rise in these exchanges. So, as the business owner, remember that account receivable solutions is best carried out when calm and focussed. Do not threaten or harass your customers; it will only serve to bring your business and you a bad name.
Account receivable solutions can be a daunting task. No one likes it but no business is without it. So the best you can do is find ways to make payment collection easier and do all you can to prevent late and delinquent payments from occurring. If all that doesn’t work or seems like too much, it might be a good idea to outsource to an account receivable solutions company.