Tips That You Can Use For Collecting Your Past Due Accounts
One of the most common reasons why small businesses often fail is slow cash flow. When the accounts receivable for a business is not under control, the cash flow is usually not in control either. Most small business owners depend on their customers paying them on time so the business can continue to operate normally.
These small business owners cannot tell their landlord or utility company they have not been paid yet. They have to pay their bills regardless of whether they have received payment or not. So, why do small business owners seem to have trouble asking their customers to pay on time? There are several tips that you can follow to make sure that you never have to experience problems collecting your past due accounts.
Set Up A System Of Contact
You should have all of your customers set up on a schedule where they are contacted at regular intervals after you have requested payment. The first contact can be made x amount of days after the payment request or invoice has been sent. The second contact can be made x+10 days afterwards. Then you can schedule a third contact if necessary. This shows your customer that you are persistent and you are not going to forget about the payment that is owed to you.
Also make sure that you have a script that you can follow as you make contact with the customer. Every day look over your contact list and call those customers using the script. This forces you to be proactive in receiving your payment and not delay making the phone calls.
When To Send Letters
A small business owner should only send letters if the customer has not responded to the phone calls. This is when you begin creating a file that can be used in small claims court if necessary.
It takes some work to keep track of the past due accounts that are owed to you. However when you consider the amount of cash that belongs to you that you may never receive, you will take the necessary steps to ensure you are paid promptly.
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