A subject that does not get covered during days dedicated to small business is the issue around accounts receivables and these small businesses not getting paid for their services. Many of these operations rely heavily on regular cash flow but in many cases, payment for services can be delayed by customers or in some cases, not received at all. http://www.youtube.com/
The collection agency has come up with a number of “how to” tips for improving cash flow and making sure the relationship between business and customer is not severely damaged:
Payment Terms Up Front: Making sure customers are fully aware of their obligations in terms of paying is absolutely critical. If customers come into an office or waiting room, make sure there are signs in obviously places so customers are aware of terms while they are there. If business is done outside the office, a business is advised to have language in contract or a letter outlining payment terms.
Follow Up Is Key: When a customer does not pay on time, follow up is vital to resolving the debt and keeping the customer. A good first start is to follow up by mail. If payment is still not received in a recommended 10 days, a tactful phone call is suggested to try and open the lines of communication.
Know The Warning Signs: If repeated attempts to communicate with the late-paying customer go unsuccessful, there may be an issue arising. Returned mail, disconnected phone and complete unresponsiveness are other clear signs of an account gone delinquent.
Get Help: Reputable collection agencies offer an invaluable service to a small business. Find an agency that offers a flat fee collections system that any size business can afford. Retain one that knows the industry and operates diplomatically on behalf of the business. Getting help or outsourcing can also remove the uncomfortable situation of a small business having to ask customers to pay who have not.
More advice for small businesses can be found at: http://www.americanprofit.net/
About American Profit Recovery:
American Profit Recovery (APR) is a collection agency (http://www.americanprofit.net/