3 Tips for Improving Your Accounts Receivable Process and 4 Tips for Making Difficult Phone Calls. Once an outstanding invoice has remained for a while, you need to decide what maintaining your relationship with the client and the money owed are both worth.When it comes to businesses that have unpaid balances, there are typically two types—those who can’t pay and those who won’t pay. In some cases, making a deal on an outstanding invoice is the best decision you can make.
What’s Your Goal?You should consider making a deal on an outstanding invoice on a company-by-company basis. Start by getting an in-depth look at the company’s current financial problems. If you are completing your due diligence and maintaining strong relationships with your customers, you might have noticed some signs of financial problems before the invoice was even due. Once the invoice is outstanding, you should get on the phone and ask what’s going on. There’s a good chance that your contact in Accounts Payable, even if you have a great relationship with the company, might not be able to share much about the scope of the issue. Don’t stop digging! Now is also the time to think about this customer in the past. Are they a long-term client that has always paid invoices early or on time? Or, are they a new customer struggling to pay their first order? The answer will affect your collections process.
Circumstances MatterIf the company is going under and on the edge of filing for bankruptcy or closing entirely, you should consider making a deal. Compromising on the amount owed on an outstanding invoice might be the only chance you have at recovering anything, so making a deal is logical. However, some companies have temporary cash flow problems or are also dealing with unpaid invoices that are affecting their bottom line. If the payment issue on the outstanding invoice seems to stem from a temporary or short-term situation, consider “making a deal” by changing the payment date and adding interest and fees to compensate for the tardiness. In this situation, you should keep in mind you are taking a risk in waiting, as short-term financial situations can quickly become long-term. By waiting to collect payment, you could miss the window of time in which you might have received full compensation.
Work with a Professional Collections AgencyThe decision of whether, when, or for how much you should make a deal on an outstanding invoice is very complex. It requires research and plenty of conversation. Most small and mid-sized business owners do not have the time or legal expertise to know when making a deal is or is not worth it. Besides, even if you can’t collect, an agency that is specialized on just such work might be able to. As a result, many businesses choose to partner with professional collections agencies. If you decide to send your overdue invoices to a collection agency, the agency can also negotiate with the debtor. Alacrity Collections has years of experiencing reading between the lines in tricky financial and business situations to make accurate recommendations to you. Our negotiation tactics are always designed with preserving your business relationships in mind, and we know how to get you as much of what you are owed as possible.
Partner with Alacrity Collections, a Professional B2B Collections Agency to Collect on Unpaid InvoicesAlacrity Collections is proud to be a leader in commercial collections. We achieve great results that are over twice the national average and treat all of our customers with dignity and respect, on social media and offline. We work tirelessly to protect your brand and improve your net returns. To learn more about our services and get in touch, 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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