How To Collect Overdue Payments From Clients

How To Collect Overdue Payments From Clients

In order to collect overdue payments from clients efficiently, you need to have a process in your business that is well-oiled.  Whether it is your credit control team, or you as the owner doing the collecting, if you have a plan and follow it through you will increase your cashflow in your business.

We always advise clients that to collect overdue payments from clients you need to have 3 qualities: persistence, tenacity and determination.

To give you the best chance of succeeding at collecting your overdue payments, we have put together a 3-step process that will boost your cashflow instantly:

Step 1:

7 days before your invoice is due call your customer make sure they have a copy of the invoice

Step 2:

On due date (usually 30 days) call or email your customer to remind them payment is due and ask them for a payment date (if they need a reason, it’s so you can schedule this into your cashflow forecasts)

Step 3:

7 days after the due date, remind them the invoice is overdue and continued non-payment will result in Interest and Charges being added to their account

Collect Overdue Payments

If they still continue to resist payment after this stage you should contact a 3rd part debt collection agency to help collect overdue payments from clients because you never want to waste too much time on non-paying customers.

Be strict, and clear about your procedures to your customers BEFORE you do business with them and they will soon learn that you are serious about doing business, and you will soon improve your ability to collect overdue payments from clients.

If you would like to chat through any problems your business faces with overdue payments from clients, or would like to improve your cashflow with 3rd party collection agencies, please don’t hesitate to contact us on 0800 069 8777 or email enquiries@tauruscollection.com, or visit our website www.tauruscollections.com

3rd Party Collection Agencies

Why I Used 3rd Party Collection Agencies to Achieve My Goals

Think about it.  3rd party collection agencies are a no-brainer.  In your business, do you anticipate people to not pay you.  Of course you don’t.   So that means that when people don’t pay you (and they inevitably won’t), that this is taking up valuable time away from you as a business owners no.1 priority – and that is: to grow your business.

3rd party collection agencies are as important as your accountant.  Or your business coach.  Or your staff.  They ensure that none of your late payers get away with paying late, or worse still not at all.  Its like having a legal department as back-up for when the worst happens, such as a customer deciding to pay you later than 45 days, you always have someone you can trust to call on.

3rd party collection agencies

Business owners in today’s fast-paced tech world of doing things quickly, need to be on top of everything before its happened.  3rd party collection agencies take the worry away from company Directors, weighing them down chasing debts that are never likely to get paid until they are escalated.

And that is the key.  3rd party collection agencies help business owners achieve their goals by freeing up their time and efficiently carrying out work that would otherwise drain time, money and resources.

3rd party collection agencies can help:

  • Speed up payments to boost your cashflow
  • Create a pay-on-time culture, your customers know late payment is unacceptable
  • Protect your company from unnecessary losses if a company goes insolvent

If you would like to chat through any problems your business faces with late payments, or would like to improve your cashflow with 3rd party collection agencies, please don’t hesitate to contact us on 0800 160 1681 or email enquiries@tauruscollection.com, or visit our website www.tauruscollections.com

Late Payment of Invoices

How To Use Late Payment of Invoices To Win More Customers

That’s a strange title, I agree.  How to use Late Payment of invoices for good, and even to grow your business.  Well, having been in the industry more than 20 years now, with just about every scenario there is when it comes to late payment of invoices, we have learnt one thing more than anything.  Clients start to pay quicker when they learn that you have a procedure in place for chasing debts.

Its just simple psychology at the end of the day – whoever shouts loudest gets the attention; the squeaky wheel gets the grease, however you phrase it: effective, procedurised collecting of late payment of invoices is a modern-day MUST-HAVE for SMEs all over the UK.

Late Payment of Invoices

So how do we win more customers from it?

Well-oiled procedures are key to a successful business.  Reputation is everything.  If you build a collection process into your business that is fast, effective and professional, customers will respond positively.

Many customers we have collected from often say how professional we were in handling the matter and they commend the proficiency in which we have carried out the work.

Once you start to gain a reputation as a professional, no-nonsense business when it comes to late payment of invoices, the no-nonesnse tag will spread throughout your organisation and will only result in one thing, winning more, better, customers.

Try these 3 tips:

  • PREVENT: Call your customers before the invoice is due to check there are no problems with it – preventing delay 2-3 weeks down the line when it is already overdue
  • CHASE: Use letters, calls, and emails to chase the debt for up to 4 weeks once it is due
  • ESCALATE: pass to a 3rd party collector or solicitor for collection once your invoice is past 60 days due

So for Late Payment of invoices, don’t always think you are stuck with this culture, you can do something about it and you can grow your business from it.

If you would like to chat through any problems your business faces with late payments, or would like to improve your cashflow, please don’t hesitate to contact us on 0800 160 1681 or email enquiries@tauruscollections.com, or visit our website www.tauruscollections.com

The Best Debt Collection Agencies

3 Myths of The Best Debt Collection Agencies Finally Shattered

As a business-owner knowing who the best debt collection agencies are could be the difference between your business surviving, and your business going insolvent. It really is that simple.

Knowing who a trusted company who falls under the banner of “the best debt collection agencies” is critical to the efficiency, growth and development over the years for your business.

So we thought we would dispel the myths about the best debt collection agencies and the practices, in our case at least:

Myth 1 – They are services only large companies use – not the case, in fact, most of our clients are small-medium sized businesses that require one-off help in certain cases where they are having difficulty getting a response from the debtor.

Myth 2 – They are expensive – compared to the cost of your time it takes you to do the collections calls, emails, and letters yourself, then choosing one of the best debt collection agencies is not much of a comparison. Particularly on No Win No Fee, it is literally no-risk proposition as you only pay the agency when you get paid, which is a great way to do business!

Myth 3 – They harm relationships with my customers – we often receive comments from clients who say how well we have handled a very sensitive matter, and many customers are impressed by the professionalism shown so that improves the client-customer relationship going forward, as they have more respect for your robust business practices.

So you can see that the best debt collection agencies always operate professionally and in the best interests of a client’s business at all times, leaving no stone unturned to collect debts and make sure you are paid including costs & interest.

If you would like to chat through any problems your business faces with late payments, or would like to improve your cashflow, please don’t hesitate to contact us on 0800 160 1681 or email enquiries@tauruscollections.com, or visit our website www.tauruscollections.com

Credit control support

What Is Credit Control Support and How Does It Work?

Credit control support is a method used by small-medium sized businesses to assist in collection of overdue accounts.  As a result, the action improves a business’s cash flow. Credit control is a very important factor in a business’s overall success and is often regarded as the lifeblood of any company.

Offering credit to a customer involves a number of risks, but there is one risk that is the most common: non-payment.  This main risk occurs when the other customer involved refuses to pay its dues and the company is exposed to that amount having already supplied goods.

The success of credit control support lies in the efficiency of a procedure to chase the outstanding debts, and subsequently systemize a process so that the customers are clearly aware that late-payment will not be tolerated, effectively grooming the business’s customers over a period of time to pay regularly.

Credit Control Support

If a customer has failed to make a monthly payment on the due date, usually within 30 days, then a credit control support team member will send a letter to remind the customer the payment is due.  Should the debt go beyond 45 days, a further reminder letter or telephone call is made.  If a company continues to resist payment beyond 60 days the credit control support team would recommend the instruction of legal proceedings, providing no dispute or valid reason for non-payment has been raised up to this point.
Taurus Collections is a commercial debt collection business in the UK that specializes in credit control support. Taurus promises to collect your cash fast, effectively and save you the time, money and reduce dispute-time. Our company takes pride in helping businesses collect their money.

For a no-obligation chat about how credit control support could help your business improve cashflow, please don’t hesitate to contact us on 01332 565350 or email enquiries@tauruscollections.com

Outsourced Credit Control Services

The Untold Secret To Outsourced Credit Control Services In Less Than Ten Minutes

Our clients appreciate how we approach outsourced credit control services.  There is no mystery. But there is a secret.

We have a simple method which is effective and produces results, and we have narrowed it down to three key areas you need to focus on.  If you are thinking about outsourced credit control services, you will want to make sure your provider is putting some systems in place that can be measured on the following things:

  • Calls – you have to make calls for people to pay you. Its just human nature.  People pay people.  Emails can easily be ignored.  Get on the phone and speak to an employee at the company that owes you money.
  • Copies of invoices – always have these to hand, including all the details of the job at hand, if you’re considering outsourced credit control services. Lack of invoice copies is the no.1 reason for late payment, according to a recent survey.
  • Follow-Ups – don’t just think because a customer has said they will pay, they will. Always follow-up with a call, email or letter, many customers take 3 chasers before they consider your chasing action to be serious, so bear that in mind if you are looking at outsourced credit control services.

Outsourced Credit Control Services

Above are just a few pointers to keep in mind if your company has a requirement for outsourced credit control services.  It can be a long drawn out affair chasing invoices, but you will save time and money by outsourcing operations of this nature.

Many of our clients tell us this is the worst part of being in business, and this is the no.1 reason they outsource their collections procedures!

If you need any help collecting debts, or want to chat about outsourced credit control services, speak to our team at Taurus on 01332 565 350 and we will be happy to discuss your requirements on a no-obligation basis or email enquiries@tauruscollections.com

Collecting Overdue Accounts

Take 2.6 Minutes to Get Started With Collecting Overdue Accounts… You’ll be Happy You Did!

So you are a business owner and collecting overdue accounts is a problem.  Well, luckily, help is at hand.  Most of our clients have very little experience of collecting overdue accounts, believe it or not, this was NOT the reason they started a business.  It is often the last thing a business owner wants to do.

Collecting Overdue Accounts

However we can help you implement some really simple practices to cut down the time you spend on collecting overdue accounts, and allow you more time to grow the more enjoyable parts of your business like sales and new clients.

  1. Invoice quickly – always invoice on completion of a job. Many companies wait until month-end to raise an invoice, which only serves to lengthen the payment terms more than necessary.
  2. Chase politely (at first!) – schedule a call 1 week before the payment terms are up, so after 21 days to make sure they have received a copy. When collecting overdue accounts, not having a copy of an invoice is the no.1 reason for late payment!
  3. Chase firmly (when overdue!) – if an invoice remains unpaid for longer than 2-3 weeks, always follow through on any threats you make. Advise your customer that you will be adding charges and interest for any further delays.

So there you have 3 very simple tips to get you going when collecting overdue accounts.

Remember, that chasing is all about procedures and you should implement a credit policy for your business so everyone knows their duty, right from sales executives, to managers, to staff – collecting overdue accounts should be your comapany’s no.1 priority.

Remember, Cash is king.

If you need any help collecting debts speak to our team at Taurus on 01332 565 350 and we will be happy to discuss your requirements on a no-obligation basis or email enquiries@tauruscollections.com

Debtor collections

Who Else Wants To Know How Debtor Collections Can Improve Cashflow

How many times do you here it from your customers?  4 or 5 times per month, maybe more: “We can’t pay because a) we don’t have a copy b) we don’t have a PO number c) our system made an error d) the manager who signs the cheques is on holiday e) the rates are wrong….the list goes on.

We know how you feel.  And it is frustrating for you as a business-owner.  That is why the best way to combat these excuses in Debtor collections is to have all your ducks in a row, and that I mean procedures.  Calling, emailing, letter-writing, all need to be aligned in your chase procedure by your credit control department to keep delays in payment right down to a minimum.

Here’s a few quick tips to boost your cashflow when considering debtor collections:

  • Communicate – call your customers 14 days after sending an invoice. That way if your terms are 30 days, you have 2 weeks to iron out any queries or disputes, and then there is more chance of getting paid on time.
  • Follow-Up – use formal communications when the invoice becomes overdue (i.e past 30 days) a written correspondence actually stating “OVERDUE” in the email title is very hard to ignore, and often gets a swift response.
  • Legal – if a customer has reached 60 days without a valid reason for non-payment and/ or isn’t responding to your calls, emails or letters, DO NOT DELAY. There may be an issue with your customers finances and the next correspondence you receive in the process of debtor collections could be a Notice of Insolvency.

I hope that these quick tips are useful for your Debtor collections efforts and these are procedures you can put into place in your business today.

If you would like to chat through any problems with Debtor collections, or would like to improve your cashflow, please don’t hesitate to contact us on 0800 160 1681 or email enquiries@tauruscollection.com, or visit our website www.tauruscollections.com

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