New Years Resolution for 2011: 5 ways to improve you company's debt collections

5 ways that you can improve your company's debt collections. Start turning those unpaid invoices into cash flow so that you can grow your business and increase your profits.
By: Jeff Zelaya
 
Dec. 14, 2010 - PRLog -- 1. Develop an approval process to reduce the number of problem accounts. Only extend credit to those who pass your approval process. This may include getting a background and asset check before accepting them as your customer. Once you accept a customer, you may want to consider the following:

   * Possibly getting a credit card to secure payments.  Next to cash payments, this is an effective way to ensure the customer is committed to paying you.
   * Consider setting in a Progress Payment Plan for work in progress or Contract Sales.  For example, 15% at placement of order, 40% after 60 days, etc. to lighten the tightness of cash flow and lower the payment for the customer.
   * Set a credit limit for every customer.

  2. Get Deposits. In Large orders, produce to orders, and custom orders, getting a non-refundable deposit of 10-50% of the final price ensures the customers commitment to pay.

 3. Do not wait too long before you attempt to collect. The grace period past the due date should only be about 2 business days.  After that is it time to contact your customer to let them know that you are on top of things.  The longer you wait the less chance you have of collecting. Be friendly with the first reminder.  If your customer still does not pay after you continually contact them, consider hiring a debt collection agency, and FAST!

  4. Document any contact you have with your customers.  Always start a conversation with the terms of the original agreement to let your customer know that you are going to be on top of the issue until the bill is paid.

  5 Be fair and firm.  Creating templates of scripts of what you will say is a great way to be sure that you stay calm and friendly when trying to get your customer to pay.

Let Butler, Robbins and White help you collect those unpaid receivables. We have a proven record with 31 years experience collecting for Fortune 500's and several international organizations. For more information visit our website today at http://brwcollect.com

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We are a global commercial collection agency with 31 years of experience collecting money all over the world. BRW services include: Commercial Collections, BIS, Prepaid Collections, B2B Collections, Debt Negotiation, International Collections & more
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Source:Jeff Zelaya
Email:***@brwcollect.com
Zip:33321
Tags:Commercial Collections, B2B, Corporate, Account Receiveables, Debt Recovery, Bill Collectors
Industry:Financial, Collections, Debt
Location:Fort Lauderdale - Florida - United States
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