An effective collections policy requires some kind of system that gives you the best chance of getting overdue bills are paid, save your business. Let slip late payment can slow the flow of cash and spoil the chances of your company’s collection. how to structure their approach to collections is their choice. The important thing is to have an enclosed system and its use in all accounts to it. The following chart will help you begin designing your own.

The approval of the customer contact telephone

Approximately three days after your product or service has been delivered to its first telephone contact. dissatisfied customers are more likely to pay late. Expect teething problems, making a friendly phone contact. This will help you talk with your client about your company’s performance to ensure that they have fulfilled their expectations. Submitting your product or service on time, in the correct amount, the damage was there, it’s the right price. End these calls by mentioning that a bill about to arrive, and underscore its expiration date.

Reminder, five days past due

You are just given a friendly reminder notice that the expiration date has passed. You give them the benefit of the doubt and let them know that you are assuming the client has forgotten, misplaced, or lost the bill in the A / P and the department will pay for this reminder. You may want to mail or mail a copy of the invoice with “past due” stamped in red ink.

OVERDUE second notice, and 10 AFTER THE FIRST

This still should be another reminder tolerant client account needs immediate attention.This may be a short form letter or e-mail with a duplicate invoice attached. Keep it friendly and unthreatening. TRY THIS:

We are writing to remind you to make payment of your outstanding balance, which may have been overlooked. Please send a check for $ in the envelope to get your account current. Thank you for your cooperation.

COLLECTION ONE PHONE CALL, 7 DAYS AFTER THE SECOND BILL IN THE PAST

Make a phone call to find out the reason for nonpayment. The client can now be satisfied with your product or service, or may be experiencing liquidity problems. Be polite but firm and make sure you get a commitment of payment. Excuses waiting and be prepared to handle this call. If the debtor says the check is in the mail, ask when it was mailed and in what direction.

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