Collecting overdue accounts is important to the health of your business and to a steady cash flow. There are techniques to help with collection efforts.
- Create policies and procedures that establish how you will extend credit, bill and follow up on past due services.
- Obtain credit references on new customers prior to providing products or services.
- Always send an accompanying invoice when performing a service or shipping merchandise.
- Mail monthly statements communicating what is still owed, stamp past due and handwrite a friendly note requesting payment.
- Aggressively manage your receivables after mailing the statement by politely asking when you may expect payment.
- Keep steady, friendly contact with your customer until paid.
- After 60 days inquire why the customer hasn’t paid and what can be done to speed payment.
- Prevent a reputation for bargaining on your bills or you may end the year without full payment on invoices.
