As a business owner, you understand how important it is to receive payment for the services or products provided by your business. If a debtor fails to pay, it may hinder your ability to make payroll, buy necessary supplies or even keep the lights on. You can try to collect the unpaid debt yourself, which can take up valuable time and resources, and possibly affect your relationships with your customers.
If you can’t collect on an invoice, you have a few different options.
Write the payment off.
- If you do go this route, be sure you learn from the situation.
- Unpaid invoices can add up over time and lead to major losses.
Establish a system so that it doesn’t happen again in the future.
- Set clear expectations on payment terms before you start any project or complete any sale.
- The customer needs to know exactly how much it will cost, when the payment is due, and what the payment terms are.
- Clearly explain the terms and get the customer to agree to them in writing by signing a payment agreement or contract.
Consistently follow up on unpaid invoices.
- Automated emails or phone calls won’t instill urgency to make payment.
- Personalize the follow up, remind them that there’s a face behind the late invoice and politely encourage them to make the payment.
- Always be sure to compose yourself before speaking to your customers. Angry threats will further diminish your chance of collecting and could permanently damage your relationship with the customer.
If you’ve exhausted all your options and you can’t collect on an invoice, it makes sense to turn a difficult task over to the professionals at Central Credit Audit, LLC with the experience, equipment and motivation to do the job.
As a collection agency, we exceed the highest standards in our professionally trained staff, data security and excellence in customer service and communications, ensuring your customers are treated with respect and you, as our client, receive outstanding results.