- August 17, 2016
- Posted by: Taurus Collections
- Category: Uncategorized
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.
- 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.
- 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!
- 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 email@example.com