Getting paid on time isn’t totally out of your control. This isn’t the weather we’re talking about — it’s business. Sure, everybody runs into roadblocks with a customer or two. But what separates a steady cash flow and a dried-up channel is right there in your hands.
At Monetaria, we know there are plenty of things you can do to make sure your customers pay on time. Ten things, in fact.
The future of account receivables is looking up. Things are more technical now, and that’s good news. You have plenty of tools and tricks awaiting you to lower your stress levels and actually look forward to the end of the month. Here are some of the best tips to get paid on time, every time.
10 Debt Collection Hacks: The Expert’s Cheat Sheet to Always Get Paid
- Record, Record, Record.
If it sounds like we’re saying the same thing over and over — it’s because we are. Throughout our list, we’ll be pleading with you to document customer interactions, invoice calls, responses, and actions taken to resolve overdue receivables. So it’s worth just coming out and saying it at the top of the list: Record everything! It will help you a lot in the long run.
- Nip Complaints in the Bud
Most overdue payments come from customers that have an issue with your service or product. They may have mentioned something in passing, or wrote a bad review on Google. Either way, it’s important to contact them and hash it out.
Make sure to keep documentation of the conversations you have with customers. You don’t have to go covert ops and buy a hidden mic or anything. Just write down the date and the broad details of the conversation. Whatever issues your customer has with your business, getting them resolved will always be cheaper than negotiating bad debts down the road.
- Reward Paying on Time
Setting up some minor incentives can have profound psychological effects on your customers. Giving them 3% or 5% off for early payment means they’ll think twice before adding your invoice to the bottom of the list.
To spice it up a notch, you could also throw in a penalty. Letting your customers know that their overdue accounts accrue interest charges can help remind them that what isn’t paid today will only cost more tomorrow.
- Cut Risks with Credit Applications
For loans and high-cost invoicing, it’s worth taking the extra time to run a credit check. Both Equifax and Transunion can pull business credit reports for B2B business loans and other dealings. The money it costs will seem like peanuts compared to the stress it’ll save you knowing your customer’s financial health.
A B2B credit report will let you know about any liens, court judgments, and delinquent accounts under the business’ name. When you know that your prospective client has been sent to collections in the last six years, it may make you rethink your decision.
- Invest in Airtight Contracts
Downloading free contracts off the internet, or asking a buddy’s girlfriend’s brother who used to be a paralegal to write up your customer contracts is bound to make you eat crow. The money you spend on a thorough contract will save you in the long run — we guarantee it.
- Double-Check Client ID
When setting up a new account, ask for a photocopy of the client’s driver’s license. Then, when you’re confirming their application or account information, compare the name, address, and date of birth.
If anything doesn’t add up, ask your client. For example, they could’ve recently moved, and the verification saved you the headache of sending an invoice to the wrong address.
- Ask for a Deposit
Getting partial payment ensures a level of trust between your business and your customer. You also get to bolster your cash flow long before the account is due. It can be as simple as 30% of the invoice. For monthly payments, we suggest asking for first and last.
- Be Polite... but Be Heard
When a client doesn’t pay on time, it’s important that your reminders be polite and considerate. Your relationship might be under a little pressure, but most of the time, you can resolve the account on good terms.
Make sure you update the debtor on how much is due and offer some guidance on how they can resolve the account. If they are strapped for cash, there’s a good chance you aren’t the only one calling for payment. Who do you think they’ll want to pay, the person that tries to understand the situation or the one yelling their ear off?
- Invest in Airtight Contracts
We live in a world of computers and automation, so leverage some of that silicon and solder by setting up notifications when a payment is overdue. That way, you can cancel their monthly service or stop your crew from going to the job site. It sends the message that you’re aware of the overdue account while also not putting your finances on the line.
- Contact the Pros
When there’s no answer on the other end of the line, or the account goes a month or more overdue, it might be time to call in the calvary. You can submit accounts to Monetaria day or night, and we’ll get to work to get you paid.
Put an end to the past due blues
Waiting for an invoice to come in doesn’t have to feel so stressful. There are lots of things you can do to make sure your invoices are paid in full.
Try implementing some of our professional tips, and you’ll soon see how easy it is to keep bad debts at bay. If you have questions about B2B collections or an account you’d like to resolve — we’ve got you covered. Contact us anytime.