Tips on recovering payment
Ensuring that your client receives an accurate invoice with all the necessary information reflected is important. It is also important that you are able to determine the billing nature of a job so that the invoice that is raised is precise. Such accuracy will cut the time spent on enquiries, clarifications, and corrections, resulting in a smoother payment process.
Ensure the invoice was received
Your clients most likely receive tons of invoices, missing your invoice is a possibility. Therefore, it is vital to follow up with the client after sending the invoice to ensure it is received and noted. Provide a deadline for the payment, contact the consumer 5-7 days before the given deadline to remind them of the payment due. Unfortunately sending an invoice and following up does not always guarantee a timely payment.
When the deadline is missed
It needs to be clear to your debtor that you are serious about getting payment, The best way to do this is to send out regular statements, these do not only remind debtors of their outstanding debt, but it also lets them know you are on top of the situation. If a dodgy client gets the slightest impression that your collection method is not strict, they will most likely take advantage of the situation. If push comes to shove, a personal visit could also be an idea to explore, visiting your debtor may also be useful, especially if there is an actual problem that is delaying the payment.
The final stroke
If 120 days lapse without getting payment, consider this a wearisome payment retrieval. Often, business owners write off perfectly recoverable debts because “it is not worth the effort”. Such write-offs may end up causing you hefty amounts of money which could even cause your business to crumble. If you have exhausted all efforts in recovering money owed by a client, employing the services of a good debt collection agency could be your next option.
A good debt collection agency who understands the importance of maintaining good customer relations can perform their task without you having to permanently lose your client base.