Debt collection and debt management are becoming the necessary parts of several companies and organizations. Debt collectors are trained professionally that keep record of overdue accounts and utilize different tasks for debt recovery.
Train your customers:
You should tell the payment terms to customers from the beginning. When the payment is due, each invoice you will give to them must have payment terms and the date. If a customer is unable to pay then call to the customer direct and ask him why they are not paying the debt.
Train your employees:
It is very necessary employees should aware of the payment terms for their customers. Usually sales employees get the payment when they make the sales; therefore, they might be bending the rules to make more sales. The best way to avoid from this situation, you should give the payment to your sales staff when you get back the payment.
Understand your customers’ payment cycle:
Most of the companies pay their payments regularly like, some pay on last date of the every month and some pay on 15th of the every month. If you will know the customer’s payment process then you can better deal with the overdue payments. This will also assist you in the management of your cash flow. For example, they are paying on each Monday then you have to remember any outstanding invoices should processed before the Monday, so that they can send the payment to you on their next payment run. You can also give your clients many facilities through they can make payments easily like cash, MasterCard or AMEX. You may also offer some discount, on the early payment. This will encourage clients to make payment in advance.
Routine Follow up:
In your customer record, you should have all the payment term agreements, customer’s limits, amount of sales with date, how much they paid and when they paid.
Once your payment is late, you should start your follow up process straight away. It is necessary that you must speak to the right person for the debt recovery. You should try to get as much payment as you can or get the commitment for the repayment with a specific date.
There is a big company Coral Sea Mercantile which have successful record in debt collection services and have great debt collectors with a lot of experience that have huge ability to get back your payment.