Top 5 Collection Tips for Small Businesses
Very few of us like asking for money. It can be awkward and lead to a breakdown in the relationship with your customer. However, you should not take it personally. It is a transaction, and for every commercial transaction you should be paid. It is money you are due. If you don’t receive payment, then it can have a serious impact on your cash flow, which is one of top concerns of all business owners.
To ensure that you get paid, use the following debt collection tips and best practices.
- Credit Check Your Customer
- Document Everything – invoices/statements/PODs
- Send payment reminders and follow up calls
- Stay professional and understanding
- Have a great debt recovery agent
Credit Check Your Customer
Prior to working with new clients and existing it is crucial to credit check. Using a trusted suppler will allow you to make the best judgment as to whether they are credit worthy and how likely payment will be. A credit report will provide you with all the key details about the customer, for example their credit limit, credit rating, payment performance, any ccjs etc
Document Everything
Once you have credit checked your customer and a deal has been done. Ensure that you have all the relevant proof of the sale. Be sure your invoice includes your details of address, payment terms and amount. This will give you the best chance of recovery if the client challenges anything. Also be sure to gather the key information of the company for example contact details and telephone numbers.
Send Payment Reminders
Before payment is due give your customer a call to ensure payment will be made. Telephone is the best way to communicate with customers as you can get an instant reply and build a better relationship with your customers. Continue to call and email until payment is made.
Stay Professional and Understanding
Even if payment isn’t forthcoming, it is key to keep calm and work with your customer. In most cases you will want to continue working with your client so it is important to retain a good working relationship with them, you don’t want to fall out over payment!
Always Have a Great Debt Recovery Partner – Just in case!
Having a trusted and successful debt recovery company that you can rely on when payment is not forthcoming is essential. When you have exhausted all internal resources of recovery the next step to take is to outsource. The power of outsourcing is so important.
If you have followed all the above points and payment is overdue, then get in touch with us today. Darcey Quigley & Co are the UK’s only Commercial Debt Recovery company who are fully FCA approved, ISO 9001 and 27001 accredited, with our sole focus being B2B debt recovery. We are experts in protecting your brand and commercial relationship with your customers whilst delivering industry leading results.
Call us on 01698 821468 and payment could be made as quick as 48 hours!
