- December 5, 2018
- Posted by: Taurus Collections
- Category: Blog
Each year around this time at Christmas, many people are looking to collect business debt before the big shutdown at Christmas. 2018 is no different! And with Brexit around the corner, many businesses are worried about an uncertain future.
Most of our clients ask us the same questions about how they can collect business debt quickly and what procedures they can put in place to prevent late payments in future. What is the most cost effective solution to collect business debt? Our answers are always the same. You need a plan! Whether small, medium or large sized, every business must have set procedures in place when collecting money from their customers.
Collect Business Debt
So we have assembled 3 key points on how you can collect business debt quickly which will bring fast results in your business:
- Be Pro-active – Plan your debt collection steps on the day you invoice your client. Diarise calls after 7 days – to make sure your customer has received a copy of the invoice okay. Call on 14-21 days – to make sure your customer has no disputes. Call on 28 days – to request a payment date for the coming month. These are all pro-active steps which you can take BEFORE your invoices become overdue, ensuring no excuses can be used for payment much beyond your 30 day terms.
- Be flexible – remember collecting debts can be difficult when there is no money to collect. In other words, work with your customer to ensure payment over a period of time if they cannot pay in full. Or, take a 50% on-account payment as good-will, and review their account in 7 days. FACT: Many debtors do not pay because they believe they have to pay in full in one go!
- Be confident – if you don’t ask you don’t get. Ask confidently for payment in 30 days’ time in your email to your customer when you send the invoice. Ask confidently when you call your customer to chase payment that you want to be paid in 7 days’ time. State confidently that non-payment of the account will result in the matter being handed over to a 3rd party collection agency and Interest and Late Payment Compensation will be added to the balance. You have done the work; do not be afraid to ask for what you are owed!
To collect business debt with speed and efficiency this Xmas you first have to put in place the correct plan and procedures to protect your business and be confident in your demands for payment!
If you are struggling to collect business debt this Xmas, please don’t hesitate to give us a call on 01332 565 350 or email email@example.com for a no obligation assessment of how we can help your business.