B2B Collections - Monetaria

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.

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, you need to do your research. 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 with a collection letter. 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.

Invoices are the bedrock of pretty much every business. Without them, you have no cash flow. And with zero cash in the bank, your reputation with clients and vendors quickly withers on the vine.

That means knowing how to react when an invoice goes unpaid isn’t just a good idea — it’s vital to the welfare of your business.

Look, most businesses will deal with at least one delinquent client during their lifespan. So don’t freak out. At Monetaria, we help businesses deal with nonpayment issues every day. In many cases, fixing the problem can be as easy as picking up the phone.

To help you deal with MIA invoices, read our quick step-by-step guide below.

Assume Your Clients Are Humans

Okay, this might sound ridiculous, but hear us out. In our experience, 99% of people want to do the right thing. So it’s totally possible that this is a simple miscommunication, and you’ll both have a good laugh about it later.

So before you pick up the phone, ask yourself these three basic questions.

Did I remember to send the invoice?
Did I send it to the right address?
Was my due date clearly legible?

If these questions don’t resolve the issue, give your client a call.

Sometimes the client has simply forgotten about payment — they were out of town or dealing with a personal issue — and they’re willing to send it over right away.

Once you’ve told them about the outstanding bill, set up a payment date. Make sure not to get off the call until they’ve agreed to that date — don’t settle for “it’s in the mail” or “as soon as possible.”

Leverage Some Incentives and Penalties

If the new payment date arrives and you’re left empty-handed, it’s time to try a new approach. You can send emails or texts to remind your client; after all, following up and persistence is crucial to collecting your money, but sometimes you need to know when it’s time to escalate.

We recommend offering incentives for early payment and penalties for late payment. For example, you could offer two percent off their bill if they pay a week before the due date. This encourages them to send you the money long before you have to start worrying about it.

While most clients respond well to incentives, some might need a gentle nudge to send out the check. Penalties not only motivate clients to pay, but the accrued interest can also ease your cash flow issues if you end up getting the money a few days or weeks late.

Get Stern... But Not Too Stern

So you’ve called and set up some incentives and still, there’s nothing in the inbox. A written letter that lets your client know they’ve fallen behind can make a big difference.

This isn’t about constant emails or texts, but rather a thoughtfully worded response to how their inaction affects you. After all, behind every business, there are people with lives and responsibilities. By ignoring your invoice, that client has decided to ignore you, too.

A written letter also adds to the documentation or proof that you’ve tried everything you can to get your outstanding debt paid. If further action ends up being needed, you’ve clearly done everything you can to help them pay.

Contact Your Debt Specialists

Months have passed, and you’re no closer to getting what you’re owed. Now would be the time to call in commercial debt recovery experts.

It may seem like you’re being tough, but truthfully, it’s more about being persistent. You haven’t done anything wrong, so why should you let this debt fall between the cracks?

At Monetaria, we have more than ten years of experience negotiating with debtors and getting past their excuses and empty promises.

From background investigations to payment plans, we’ll do whatever it takes to get you paid. That way, you can stop worrying and get back to focusing on your business.

Keep Your Business Relationships Professional

No matter how frustrating nonpayment can be, you must keep your head up and stay cool. Never insult or threaten a client that refuses to pay. Your business can survive a few delinquencies, but what it cannot survive is a tarnished public image.

You can preface any follow-up calls by asking if they’re satisfied with your services. That way, if they haven’t paid because of a gripe with one of your employees or some miscommunication, they can let you know before it escalates.

By keeping your interactions with clients private, you’ll be in better shape to impress future professional contacts and growing your business.

Don’t Let Unpaid Invoices Stop You

We know how frustrating unpaid invoices can be. They add stress and uncertainty to your business and your relationships. But no matter what, just remember that you deserve to get paid.

Hopefully, our simple five steps to debt recovery can help you reclaim a steady cash flow. If you need more help with your commercial collections, contact us anytime. Monetaria is on your side and ready to get your money recovered.