Did you know that by optimizing your accounts receivable workflow, your cash flow can be boosted? Streamlining your processes and utilizing technology helps with faster payment cycles, fewer mistakes, and improved financial forecasting. Let's start with some best practices for improving your A/R - from invoicing to payment.
Do your business debt collections keep you up at night? It's frustrating to work with a client who neglects to pay their invoices, especially when you know their non-payment will affect your ability to be successful. More often than not, some of those invoices will remain unpaid unless you have the resources to follow up with them.
Is outsourcing B2B debt collections the right choice for your business? Let's explore the advantages and find out.
As the SaaS industry experiences exponential growth, it is not surprising that non-payment issues have become a pressing concern. Non-payment creates cash flow challenges and hampers the ability to invest in product development, customer support, and overall business growth. It's imperative for SaaS companies to address non-payment issues proactively.
Discover how SaaS companies navigate the challenges of non-payment and learn the ultimate strategies they use to tackle these issues head-on.
If your business is in a situation where goods or services have been provided, but your customer has failed to pay their invoice on time, it's up to your accounts receivable team to follow up. Your A/R department, however, can only do so much to ensure that your business receives the payment it deserves and maintains a healthy cash flow. It's crucial to provide a detailed process for escalating past-due invoices beyond accounts receivable to collections.
Does your A/R team know when to escalate delinquent accounts to collections?
B2B (business-to-business) and B2C (business-to-consumer) debt collections are different. Agencies that collect from individuals will use different collection tactics and are subject to harsher regulations than those that collect from businesses. Often these agencies choose to separate consumer collections from commercial collections because the processes vary.
Understanding the difference between collecting debt from a person and a business will help determine the service your business needs.
Nobody likes asking for money - least of all when your clients aren't paying their invoices promptly. Business-to-business debt collections could also impact your relationships with current and potential clients. It's crucial to keep things professional, even when they feel personal, and the missed payments are affecting your bottom line.
Use these tips to protect your business reputation during B2B debt collections.
When it comes to dealing with B2B clients, it's important to approach any potentially negative situation with a proactive mindset. When you understand why clients may ask for more than your agreement, you can better anticipate and prepare for potential roadblocks. Whether it's negotiating with clients to find a mutually beneficial solution or knowing when it's time to end the relationship, there are strategies you can use to ensure a successful project outcome.
With these tips in mind, you can confidently handle clients that are out-of-scope.
If you've ever struggled with chronic late-paying clients or are silently seething over invoices that were never paid, you're probably considering commercial debt collection. Of course, you're wondering how much it'll cost and if you have time to research it. You may wonder how to escalate an unpaid debt to a collections agency and if they'll damage your client relationships. Let's tackle some of those questions, shall we?
The Dos and Don'ts of Commercial Debt Collection: What You Need to Know.
When you're growing a business, a late-paying client can be frustrating. You have to dedicate time and resources to figure out what happened and why. You have to pull yourself together enough to have a conversation about money - something that's not easy for many people. The most important thing to remember is that your business fulfilled its part of the deal, and now your client owes your business.
When dealing with late-paying business clients, remember that it's not personal.
With the "unprecedented" events of the past few years, businesses are looking to become more efficient in all areas of their organizations. An area that is often overlooked due to its manual processes is accounts receivable. Even though payments by check have declined since 2019, thirty percent of B2B clients are still writing checks and sending them in the mail. Automating A/R has the potential to create a smoother, more dependable cash flow.