Invoice collections – top 3 tips to get paid on time

A business’s priority is sales and new business. I think most entrepreneurs would agree with that, however should your business neglect a duty of invoice collections then cashflow issues will never be too far around the corner. Getting people to pay you on time is crucial to small businesses, after all as I always tell clients; if you are not getting paid you are working for free!

Invoice collections should be no.1 priority for all businesses, whether start-up or Industry leader. We often find that suppliers will respect you for having well-oiled procedures in place to collect debts as this portrays a sense of organised capability and no-nonsense business approach.

When looking to improve invoice collections, consider these 3 tips to help you get the most out of your credit control:

1) Have a strict procedure of calling. Invoice collections should be an automated procedure and set-reminders for when an invoice falls due. Call 4-7 days before your payment terms expire to make sure there are no problems with the invoice. Disputing an invoice is the no.1 “tactic” used to delay payment.

2) Use email to get the message across. If a company delays payment to +60 days without explanation, always try and find the highest ranking person in the company you are chasing for payment and email them so you have a record of the communication. Letters may be useless as they can get lost in the mail system, or the company may be forwarding crucial correspondence to the wrong department.

3) Be firm but fair. Invoice collections should be communication between two businesses. Never let the conversation get personal, and always provide a deadline for a response. You should never wait more than 7 days for a reply.

I have always found that Invoice Collections is the heart-beat of business and, to turn a positive spin, should be integrated into the customer service side of your business. If a supplier feels their query has been handled quickly, expertly and efficiently they are more likely to do more business with you.

Our expertise is in Invoice collections and dealing with slow-payers, if you would like to chat to our team to see if we can help your business with increased cash-flow, please don’t hesitate to call us on 01332 565350 or email enquiries@tauruscollections.com