Collecting overdue accounts can seem to be a major hassle for SMEs, but the impacts of not staying on top of debtors can be devastating to business. Whether you’re a small or medium sized business, you deserve to be paid on time – no matter who your customers are.
Last week we talked about ensuring your business has a sound process in place to track and collect accounts receivable , the week prior was about avoiding bad debts through preparation. This week we complete our series of 10 easy steps to manage debt collection and cash flow issues in your business…
Part 3 – Chase overdue accounts immediately
8. 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.
9. 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.
10. 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.