Many of our customers often ask us what the best practice is for Collection of Accounts in 2016 to keep both the customer happy, but also get them to pay on time. Its often a chore of chasing, by email, letter and phone call that most businesses don’t like and feel that once an invoice is sent it should be adhered, and paid in a timely manner inside 30 days.
But that’s an ideal world in collection of accounts. The best way to motivate your customers to pay on time is to engage with them. Keep in touch at all times, make a relationship with them. If your credit control team is acting for you, then ensure they go and visit the customer’s accounts team, or take them with you on your next sales call or review meeting.
Your credit control team is a crucial part of your business, and you should listen to them carefully. Here is 3 simple tips to get your collection of accounts team motivated:
- Involve them – they are on the frontline, invite them to the next sales meetings, they can communicate with the sales person that has the relationship with your customer and perhaps let them resolve any payment issues directly with the buyer
- Ask them questions – they can see the payment patterns of your customers. They know if it would be risky to take on a new order, or whether to extend credit terms to them. They should be like your financial advisor within your business!
- Respect their role – they do a really important job for your business, and that is collecting cash. Without cash, you have no business. So be friendly to them, make them feel important, take them out on business trips. They will perform better, and your cashflow will improve!
So above are a few pointers for motivating to a better collection of accounts situation. And always remember that your credit control team is the eyes and ears of your business when it comes to looking after current customers.
If you would like to chat through any problems with Collection of accounts, or would like to improve your cashflow, please don’t hesitate to contact us on 0800 160 1681 or email email@example.com, or visit our website www.tauruscollections.com