Tip 1 Bill properly and on time.
Make sure your invoices are sent to the true party that owes the debt. Billing an agent may not be sufficient.
Late Billing promotes nonpayment by customers, impacts your cash flow and may offer a valid legal defense for non-payment.
Tip 2 Stop extending credit to the delinquent customer
Make sure you are paid before proceeding with the next order/project. If you accept non-payment, expect more of the same.
Tip 3 Excellent Communication Skills are a must
Your goal is to get paid on your commercial claim and maintain the customer relationship if profitable. Keep this in mind when writing, calling or texting to get paid. Use the opportunity to connect with the client and use the request for payment as a means of furthering the relationship rather than just “dialing for dollars”.
Tip 4 Have a predetermined plan of action
Every business regardless of size needs a plan to collect receivables to avoid costly mistakes. Write yours today.
Tip 5 Don’t Delay
Time is not your friend. Chances of collection is greatest when the debt is new.
Use your resources wisely. Concentrate on newer receivables rather than aged receivable to increase cash collected. Establish a relationship with a collection vendor and use them Or, use two to see who does a better job for you. Let the collection expert chase the old debt and focus on the most collectable commercial debt collection claims.
Implement these 5 steps and let us know how you are doing.
Call us at (212) 686-0100 or email Jocelyn directly at Jnager@ffgnesqs.com for further information and/or to help you get paid now.
