The professionals at Corporate Business Solutions recognize that accounts receivables are critical to maintaining and growing a business. Therefore, we work with small and medium – size businesses throughout the country to help improve upon procedures for accounts receivables.
If you’re a business owner looking to reduce your delinquent accounts, we have tips that may help you:
- Get Organized – If you are going to excel at accounts receivable management, you have to start from the very beginning. Be diligent in every step of the process but, most importantly, in whom you extend credit to. Net terms aren’t for everyone. Start by setting up a professional credit application that gives you a chance to get as much info as you can on these customers. Use this info to vet them so you are making proper credit decisions.
- Use the Credit Limit –Start extending more moderate terms with customers and let them know they can work their way up to more flexible terms. Not only is this an incentive but it allows you to really get to know customers’ payment habits before you give them too much room to breathe. It’s without a doubt the best way in accounts receivable management to ensure a customer will practice proper payment behavior.
- Creatively Communicate – Technology has allowed the customer relationship management game to completely transform. CRM is actually one of the most, if not the most important part of accounts receivable management. If you have a strong and healthy relationship with a client, they are not going to want to risk that. Be creative in how you connect with clients. If you are on social media, be sure to follow them on every medium, constantly commenting on their updates and showing them that you are listening. Also take note of your customers’ special occasions: birthdays, anniversaries, store openings, launches, etc. By doing this, you create an emotional connection between you and your customer, making it harder for them to take advantage of your relationship with them.
- Start Early –Create a system that allows you to remind customers when they have a payment around the corner. If it is a week before payment is due, and you still haven’t received the check, shoot the customer a friendly reminder email simply reiterating the due date and how you accept payment. Don’t make it harsh in anyway; they haven’t paid late yet!
- Don’t Wait –As soon as the payment is past due, get a reminder letter in the mail. However, don’t just use a generic letter. Be creative in your accounts receivable management and sculpt the letter’s language to be appropriate for the situation. If somebody is a chronic late-payer, you might want to up the severity, where if it’s someone’s first time offense, keep it friendly. Remember, the longer you wait to collect, the harder it is. Develop a system to quickly go after late payments as soon as the due date has passed.
To learn more about us and / or to schedule your complimentary appointment with the experts at Corporate Business Solutions, call us at 877-357-9366.