How-To Collection Tips
Getting paid in business can make the difference in being profitable or, in some cases, being put out of business. Receivables need to be managed and are always a struggle as no one likes asking for money. Here are some tips to get customers to pay.
- Offer a discount to customers who pay within 10 days 1% or 2%
- Ask customers to pay a portion of the invoice when service is rendered or an order is placed
- Personally make calls to customers who owe money
- Delegate a person within the company to make calls
- Send out friendly reminders
- Offer incentives or rotate stock if inventory is sitting
- Credit card payments should be encouraged. It is known that customers will purchase more if a credit card can be used. Know that credit card fees can be negotiated. Contact more than one company to compare rates.
- If you have to hire a collection agency always negotiate the fees it can run as high as a third.
Good Luck and please share things that have worked in collecting money in your business.