Top debt collection strategies

If you own a business you will want clients to pay you completely. Getting payments from customers will probably not always be guaranteed. Owners do not like to make collection calls as they want to keep a strong and positive customer relationship. However it is important to pursue debt collection so that your business can continue functioning. 

The following are some tips to help you improve your potential to get your cash:

Have a knowledge of customer’s credit history

One is less likely to face payment issues when your brand chooses to work with customers that pay bills on time. Carry out a commercial credit check upon every new customer account prior to you granting credit. 

You can check out a credit reporting agency in the area you are in to get an idea of commercial credit reports on businesses. The details you get from credit reporting agencies can aid you in setting credit terms that are fit for the customer’s financial situation. You can for instance ask for upfront payment from those customers who are experiencing financial uncertainty as you will not know if they will pay you later on.

Get payment immediately

If you want to remain on the safe side you can ask customers to pay right away. This can take different forms like upfront payment which includes full payment when the sale occurs. When full payment is not possible or realistic, you can agree to a sizeable deposit coming from the customer. 

When you are not able to negotiate a deposit, you can invoice the customer immediately therefore allowing you to collect the cash fast. Provide them with an early payment discount. You may make the invoice payable within full inside 30 days. Attach interest when payment is not done by that time. 

Provide simple payment options

You can try and get money into your particular business by allowing it to be really simple to pay. For this you can accept credit as well as debit cards. You can accept instalment payments as well. A business can even choose to agree to partial payments. 

Communication with customer is important

Contact the customer concerning any unpaid amount which is past due. This may simply be due to miscommunication. The sales team may have for instance misrepresented the services moreover the customers doesn’t wish to pay. It may be possible that the product may not have been shipped right. It may be that the customer did not receive the invoice. If you communicate with them,you may be able to resolve the issue and get your payment. The above are some ways to help you get your cash for your products and services. You can even consider direct debit providers at Payleadr. They can help you collect direct debits in an effortlessly way. This can be done with online tools. It is important to set up an effective way for customers to pay their debts to you. If you do not do this, same may end up not even paying for what they need to pay for.