Keep Great RecordsRecord-keeping should be a habit in your business, as your records will be the proof that your customer made a purchase in the first place. Even the smallest businesses should still keep records that contain client debtor information, addresses and contact information, the date that the debt was accrued and the date when the client was invoiced. You should also keep track of any follow-up contacts, like when you called to check in after 30 days or sent a letter after 45 days. If you are not properly keeping track of your debts, debtors and check-ins, you will not have sufficient proof to substantiate your claims.
Pay AttentionWhile keeping records is a great idea, you also need to check them to ensure that you are on track. If you have 20 clients overdue but never open the spreadsheet to see that you should follow up, your data isn’t doing much good. It’s also important to update records on a regular basis so that you can keep up with your clients. Debtors, even businesses, can change their contact information, move to a new location or go off the grid entirely. If you need to hire a business to business debt collections company for help, out of date contact information will make their job more difficult.
Start With a LetterDebts are not forever, and the ultimate goal of any business to business debt collections program should be collection! If you don’t make a demand for the money that you are owed, the other business could argue that you waived your right to collect the debt. Always start the collections process with a demand letter. The letter should include:
- Your business’s name
- The name of the debtor
- A formal notice of debt collection that lists the overdue payments and amounts
- Information about the debt (what it is from, when the purchase was made, etc.)
- A timeline of repayment
- Notice that if the debtor still does not pay within the suggested timeline, you plan to send their account to collections by a specific date.
- If they still don’t pay, follow through and turn their account over to a collections agency.
Contact a Collections Agency to Help with Your Significantly Overdue AccountsThis may take a bit of research and is worth the effort. Contact a collections agency that is experienced at collecting business to business debt and has a high ranking with the Better Business Bureau. B2B collections can take a considerable amount of time and effort. It also takes a great deal of background knowledge to attempt collections without potentially breaking the law and ruining your ability to collect. A professional agency will decrease your workload, ensure the highest collection rate possible and get you the money you are owed without the stress that doing it alone would cause.
Partner with Alacrity Collections for Business to Business Debt CollectionsAlacrity Collections is proud to be a leader in debt collections since 1982. We achieve great results that are over twice the national average and treat all of our customers with dignity and respect. We work tirelessly to protect your brand and improve your net returns. To learn more about our services, please call us at 1-800-752-9663 or set up a phone appointment directly on our representative’s calendar via this link: www.calendly.com/hheemann.
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