Why is there such a stigma attached to debt collection?

If you have provided a product or service that has cost you time, resources and money, surely it shouldn’t be awkward or embarrassing to ask for payment!

Here are 7 simple steps that you should take when you provide a product or service that is paid for at a later date.

1. Obtain full contact details for any customer you intend to do business with
2. Ensure that your payment policy is clear and that your customer agrees to your contracted terms during the sales process
3. When sending invoices, clearly mark the payment due date and send an invoice well before it should be paid
4. If the payment does not arrive on its due date, send a reminder immediately and keep a record of all communications
5. Customers are always more likely to make prompt payments to suppliers they have a good working relationship with, so keep your communication channels open
6. Have a clear process in place to deal with unpaid invoices
7. Make sure to start the collection of late payments as soon as possible

Unpaid invoices can have a damaging impact on the cash flow of any business. So it should be a top priority to ensure your collections procedure is simple, fast, efficient, and effective. Many companies treat it as an afterthought and that can be dangerous.

The process of collecting unpaid invoices does not have to result in the loss of a customer. If you approach debt recovery in the right way, it will be easier to manage. Employ strategies at every stage of the sales process to manage the customer relationship.

There are a wealth of choices to consider when you have done all you can to collect debts. Consider all the options and take earlier and simpler steps to collect unpaid invoices. It should rarely be as drastic as going to court or sending in the bailiffs!

Register a free account with ‘COLLECTaDEBTpro’ today and let us help you take control of your cash flow.