Outsource Debt Collection

Outsource Debt Collection Secrets: How To Get Better Cashflow in Your Business Using These 5 Techniques

Many companies look to outsource debt collection as part of their credit control procedures.  Its part of business survival to improve collection rates, and it should not be a difficult process to outsource debt collection.

We have put together a combination of tips to improve the ease of which you and your business can outsource debt collection, and improve the rates of collection when you find the need to go down this route if you are struggling to get your customers to pay up on time.

Outsource Debt Collection

What you need to have in place to get better cashflow:

  1. Correct details on the invoice – make sure there are no disputes concerning the invoice before you pass anything over to a debt collection agency. Disputes are the no.1 reason for non-payment.
  2. Correct contact details – do you have a telephone number, email and correct trading address? Double check all this info before you look to outsource debt collection.
  3. Negotiate before getting heavy – talk to your customers as much as possible, if it’s a problem with cashflow then try and work with them to come to a repayment arrangement, maybe they can pay an amount every month for a few months. Working with your customers can pay dividends later when the going gets good and they appreciate your leniency in difficult times.
  4. Keep on top of your top 20% of customers – it’s the 80/20 rule, your top 20% of customers usually account for 80% of your turnover and you should focus on these as priority collections for the health of your business cashflow.
  5. Don’t delay if they stop responding – be fast to act when your customers stop talking to you because the longer you leave it the more difficult it is to collect (i.e they could change address/ transfer assets/ liquidate).

So these are just a few techniques you can look at before you think about how you might outsource debt collection.

The most basic principle is that cashflow is king and without a healthy position, your business can only prosper by getting paid on time.

It is our passion that you are paid and our clients are very happy with our services.  If you are struggling to collect debt and want to outsource debt collection please don’t hestate to give us a call on 01332 565 350 or email enquiries@tauruscollections.com

How To Get Invoices Paid

How To Get Invoices Paid – a simple formula to help you collect debts quickly in your business. Apply these 3 techniques to see your company cashflow improve within weeks!

I need a collection agency for my business

I Need a Collection Agency for My Business

When we hear a company owner saying I need a collection agency for my business, we know that they need a reliable company to service their debt collection needs.  Many problems can be resolved with the intervention of a 3rd party debt collector as customers will often try and delay payment as long as possible, without thought to your cashflow.

Here are some top reasons company owners contact us when they say I need a collection agency for my business:

  • The customer has stopped responding to letters and emails
  • The phone goes dead, or is constantly engaged when I try and call to ask them to pay
  • The Accounts person responsible for making payments is always in meetings
  • The Director that signs the cheques is never in the office
  • Customers regularly pay 30, 60, 90 days beyond agreed terms – my cashflow is running dry!

If any of the scenarios above are familiar to you, and you find yourself wondering if I need a collection agency for my business, then you should take action immediately and not leave it too late.

Some customers may even be delaying payment and can result in Insolvency action then a positive outcome is much further away.

If late payment is an issue in your business, call us today on 0800 069 8777 to see how we can help, or email enquiries@tauruscollection.com

Late Payment Problem

The Ultimate Late Payment Problem Checklist

The notion of a late payment problem for businesses is as old as business itself.  From the early days, getting paid has been one of the cornerstones of successful businesses all over the world.  The late payment problem continues to cause issues for businesses of all size and stature, but often worst impacting small businesses, contractors and SMEs.

As Christmas approaches it is all the more important to get on top of late payment problem, before the long break when very few companies open for 2-3 weeks around the festive period.

Late Payment Problem

So this month we have put together a brief 5-step checklist for identifying, avoiding and dealing with a late payment problem:

  1. Invoice your customer as soon as the work is finished, that way if there are any disputes or queries, these can be resolved quicker and this won’t turn into a late payment problem
  2. Watch out for delaying tactics when asking the customer to pay, excuses such as: cheque in the post, accounts staff on holiday, signatory not in to sign the cheque, its on the next payment run etc
  3. Do a credit search on the company you are doing business with, if a Director has multiple companies set-up this could mean they are serial non-payers and should be avoided
  4. Call your customers as well as sending letters – debtors feel a sense of guilt when they receive a call & therefore are more likely to pay you, and letters can easily be ignored
  5. Follow-up with email reminders with a copy of the invoice because you have proof these were sent and can even quote the time of day – the no.1 reason for late payment  is not receiving a copy of the invoice!

Our advice is always to pre-empt the late payment problem as much as possible, chasing and escalation to 3rd party or legal process are the 2 most important things you can do to mitigate late payment problems in your business.

If late payment is an issue in your business, call us today on 0800 069 8777 to see how we can help, or email enquiries@tauruscollection.com

Late Payment Issues

Can You Really Beat Late Payment Issues Without Losing Clients?

 

This is a question we are often asked.  Late Payment Issues are a recurring problem for most businesses in the UK, and although the government and small business commissioner are doing their best to fix the problem, it’s a never-ending battle that will always be present in a modern-day business.

There is 1 simple reason why Late Payment Issues will never go away:  Cash is king, so people want to hold onto it for as long as they can get away with it.

But going back to the question Can You Really Beat Late Payment Issues Without Losing Clients? The answer is of course, yes.  But its not easy.  And you need to put systems in place which will cost you time, money, energy and more time!

But we are here to help!  Below we have put together a 3-step plan that you can implement straight away into your business that will alleviate your Late Payment Issues within weeks:

  1. Be human – talk to your customers. Too many times we see clients asking us to collect a debt and they have not actually spoken to the debtor about any possible disputes on the debt.  Remember the debtor is a customer first, so use good customer service to iron out any problems early on.
  2. Be punctual – send statement every month, and chase outstanding invoices at least every 7 days. This needs to be a well-oiled procedure when combating late payment issues, because as the old saying goes: the squeaky wheel gets the grease!
  3. Be efficient – don’t keep chasing forever. Make it clear to your customers that at a certain point (lets say 60 days) the account will be passed to legal or a 3rd party for collection.  The longer you delay this part of the procedure, the more your debtor will realise you are a soft touch and continue to cause late payment issues.

Late Payment Issues

The main point to understand is that late payment issues will always be a problem for businesses but, just like in life, its how you tackle that problem, not necessarily the actual problem itself.

So implement some debt collection procedures in your business today and watch your cashflow grow!

If you would like to speak to one of our agents about collection of debt in your company, and learn how we help similar businesses across a range of sectors in collecting debts, please don’t hesitate to call us 0800 160 1681 or email enquiries@tauruscollections.com

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

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