Today we explore Part 3 of the 10 easy steps to manage debt collection and cash flow issues in your business. Click here to review Debt Collection – What to do when customers don’t pay Part 1 or Part 2.
“Chase overdue accounts immediately”
- Start the collection process the day after the bill becomes due: The longer a debt remains outstanding the less likely it is to ever be paid. If an account was to be paid in 30 days and is not, start chasing the bill on day 31.
- Stop credit extension on overdue accounts: Although it is tough to do, particularly if you deal with big business, you must stop extending credit to customers with overdue accounts.
- Never be afraid to ask for help and don’t wait too long to call in the experts: A reputable debt collector can help you to collect your overdue accounts, leaving you to focus on other areas of your business. Don’t wait till your account is 120 days overdue to ask for help – the sooner you call the experts, the sooner you get paid.