The U.S. Small Business Administration proclaims that small businesses are the backbone of our economy and the cornerstone of America’s promise. This year, small business week will be celebrated May 20-26, 2012 and it’s an opportunity for all to recognize the incredible contributions small businesses make on our economy.
Small businesses are vitally important to the success of the United States economy, and they need to be paid on time in order to remain in business, pay other businesses and make payroll on time.
While a sensitive topic to small businesses is dealing with late paying customers, dealing with these customers in a professional and diplomatic fashion is important to ensuring profitability. Many small businesses rely heavily on cash flow so it’s important for a small business to stay on top of accounts receivables. These tips can help small businesses keep on top of cash flow;
Invoice on a timely basis; It is important for small businesses to send invoices and reminders to customers to ensure payments in a timely fashion. While many small businesses do not have large staffs, it’s important for owners to make time to bill accordingly.
Inform the customer every way possible about payment policies. Provide paperwork in the reception area or office and on each statement or invoice that they receive and have customers sign a financial agreement outlining such policies whenever possible. Knowledge of payment policies can go a long way in preventing late paying customers.
Solid and consistent customer service is essential in making sure a customer pays on time. Old fashion customer service calls when a customer’s goes into delinquency can help in resolving a late payment. Contacting a consumer early on in the delinquency and making time for customer service calls at regular intervals could result in faster payments.
If using a collection agency, find one that is recommended by colleagues and has reputable references with other small businesses. A collection agency that pledges a respectful approach to dealing with customers can reinforce the relationship. Collection agencies are important to small businesses as well as the entire economy agencies and are able to step in and assist small businesses when a more assertive approach is necessary.
“Small businesses and the innovations resulting from such ventures keep America thriving,” says Jeff DiMatteo, a partner at American Profit Recovery. “A smart, well thought out and diplomatic approach to getting paid on time keeps the business happy, the employees that rely on that business content and helps that business grow.”
More advice can be found on the APR blog at: http://www.americanprofit.net/
About American Profit Recovery:
American Profit Recovery (APR) is a collection agency with offices in Massachusetts, Michigan and North Carolina. Founded in 2004, APR specializes in the collection of third-party debt in industries such as medical/dental, banking, trades, lawn care and other professional services. With early intervention and a strong focus on ethics and diplomacy with consumers, APR works hard to preserve the relationship between client and consumer with an ultimate goal of keeping the business relationship intact. The firm serves approximately 3,500 clients nationwide. American Profit Recovery and their team have earned many awards including Best Places to Work in Collections, The ACA International Foundation Fellow Award and Banker and Tradesman’s Gold Readership Award. 800-711-0023 http://www.americanprofit.net/