Use these collection tips to make customers pay!
8 simple ways to improve accounts receivable
Believe it or not, making customers pay you faster is not as complicated as it seems. It ’s about being specific, being consistent and always in control of your account. In this video, we will explore 8 simple methods to make the process of receiving and receivables easier
Create a credit application: This gives you the opportunity to obtain as much customer information as possible in order to make the right credit decision. If you decide to move on, make sure to let them sign the contract, which clearly states the amount payable and the payment terms. This will ensure an easy and smooth collection and receivables process.
Credit lines: Consider starting with modest terms so that they can adapt to more flexible terms. This gives you the opportunity to understand your customers ’payment habits while providing customers with incentives to make payments on time, thus ensuring that the goals of collection and receivables are met.
Communicate creatively: Why not pay attention to the customer’s attention on social media, or even comment on the customer’s posts from time to time. This creates an emotional connection, making it harder for them to draw themselves closer. In terms of collections and accounts receivable, if customers like you, they are more likely to pay.
Start early: If the payment is made one week before the due date, but there is still no check, please send a friendly reminder email to the customer to simply reiterate the due date. No harshness, remember they have not paid! Just a way to master the process of receiving and receivables
Don’t wait: believe it or not, some of your customers haven’t paid because they forgot. The primary rule for collection and receivables is to send a dunning letter as soon as the payment is due. Try not to be generic, the language should be customer-specific.
Call for Collection-If you do not receive a reply, it is time to call. Although it is easy to sympathize, the accounts receivable are about actions, and you must ask the customer for some. Familiarize yourself with the most common excuses for delayed payments and learn how to deal with each one.
Installment plan-When you encounter customers with financial difficulties, installment plan is the key. Over time, it’s much better to pay back a smaller amount than to pay your customers at all. This is the entire content of the collection and receivables process
Financial expenses and incentives-whether it is the consequences of arrears of payment, or the reward of early payment, help to promote customers to get cash on time. Results and rewards are a good strategy to improve collections and receivables
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