Think of your business as a living, breathing organism. It’s made up of complex systems that keep it alive, the most important of which are the arteries that carry cash throughout the organization. Just as humans can’t live without a heart and the blood it pumps, your business can’t survive without healthy receivables that keep the cash flow pumping.

Beware of Non-Paying Customers

The best way to control your receivables is to identify good customers versus bad ones. Bad customers don’t pay their bills on time — if at all — which means they cost your business money.

Think of bad customers as clogs in your business’s arteries. One clog might not cause a fatal heart attack, but if they spread and build up, you can wind up with a business on life support.

Fortunately, you can implement accounts receivable management strategies to reduce the potential for clogs. We believe in an ambitious but respectful debt-collection practice that enables us to collect your money more effectively.

Clarifying Billing Policies and Procedures

If your business doesn’t have clear-cut billing policies, your customers won’t know what to expect. Although she’s speaking specifically about medical practices, Courtney Lefferts’ advice for improving receivables management applies to all businesses. She writes for WebPT that prompt billing creates a sense of urgency for your customers. If they receive their bills soon after their interaction with your business, they’ll be more likely to pay.

Additionally, each bill must clearly spell out your expectations. Instead of writing “due upon receipt,” for instance, provide a hard due date that matches the expectations you set up when you first interacted with the customer. Provide all customers with an explanation of your billing policies and get them to sign it before you conclude a transaction.

Continuing Communication

We’ve discovered that a strictly-followed collection process makes accounts receivable easier for our clients. We handle the collection practices, from letters and telephone calls to credit reporting and skip tracing, so you don’t have to worry about it. All businesses can benefit from this practice by keeping in touch with non-paying customers.

It’s easy for a customer to ignore a single demand letter for payment. However, if you continually remind them of an overdue payment, you increase your chances of collecting the money owed. Whether you take advantage of our superior debt recovery services or not, it’s essential to make collections a priority so you don’t strangle your cash flow.

We believe in taking a holistic approach to debt collection that helps our customers maintain financial health. If you’re interested in improving your cash flow and controlling your receivables more effectively contact us. We’ll help you get your business back on track.