As if starting a business isn't challenging enough, after a great idea comes the hard work of attracting clients. After attracting those clients is the task of getting them to pay invoices on time. In reality, the homework used to qualify clients may also offer clues to whether they will pay on time. While some may argue that beggars can't be choosers, we "beg" to differ.
Business suppliers, vendors, distributors and manufacturers typically have their own industry jargon. There's an expectation among those who "speak the language" that in a business relationship, you'll have a solid comprehension of how that industry works. Debt collections is no different. Businesses seeking to recover past due accounts receivables will search for debt collection agencies they can trust, who comprehend their industry specifics and who also speak their language.
When talking about money, the Latin playright, Plautus, is quoted as saying, "When you ask for it back again, you may find a friend made an enemy by your kindness. If you begin to press still further, either you must part with that which you have entrusted, or else you must lose that friend."
Money discussions are challenging and it's very easy to take it personally when a client owes you money but isn't paying. The truth is, collecting what is owed to you is not personal, it's necessary.
Successful businesses rely on positive cash flow to pay salaries, vendors and otherwise re-invest in the company. Cash flow depends on accounts receivables being paid on time and with regularity. Small business owners may be too busy to stay aware of invoices that are past due. Invoicing software programs, such as QuickBooks, can help make this process easier. Enterprise Recovery works with businesses of all sizes, but we have a special team designated to helping accounting departments that run on QuickBooks.
How to collect past due invoices more efficiently.
When invoices are paid on time, business owners do a little dance in their office chairs. Contracts are written and signed in faith that every party will contribute what they've agreed. There are cases, however, where an event or misunderstanding or a thousand other reasons prevent an invoice from being paid. Unfortunately, some businesses will fail in their quest to recover those debts. Some businesses will fail altogether.
Here are tips to getting paid back what's owed to you quickly.
In 2012, the hashtag #GetPaidNotPlayed was trending on Twitter. The tweets were shared horror stories by contractors and small business owners who were stiffed on their invoices. In total, the amounts not paid by those adding to the hashtag totaled up to nearly $16million. The saddest part of the story is that many of these invoices would remain unpaid because businesses want to continue doing business, not deal with the frustration of chasing down a non-paying client.
Dealing with the frustration of a non-paying client takes time and resources away from other necessary daily tasks. With so much at stake, not only concerns of how the non-payment will affect the business but also the client relationships, business owners may also be hesitant to turn over their unpaid accounts to a collections agency. Too many unanswered questions could stall the collections process while the unpaid invoice remains unpaid. Can a commercial collections agency help? Will they respect the client relationship? How much will it cost?
A business relationship can be just like any relationship. There's courtship, similar interests, a proposal, and the big day. On the day two businesses sign an agreement, excitement abounds at the potential of the relationship to add value. Unmet expectations and unresolved differences can quickly sour this relationship potential, leaving one or both parties unwilling to uphold their end of the deal. An unpaid invoice breaks down the relationship even further, leading you to question: Is it time to fire this client? Could you have predicted the end?
Chasing down an unpaid invoice seems like a productive way to spend your time .... said no business owner, ever!
When clients don't pay, not only does the late payment affect paying your own bills, it also steals time and resources. It can be especially frustrating to realize payment is late days or weeks after it is due. Suddenly, the situation becomes an emergency. Where do you start? How long will it take?
What do you say when a client won't pay?
Payment technology helps create a seamless and innovative experience for corporate payments and supply chains. In the digital marketplace, vendors and suppliers can contract and expedite payments in a timely manner. Businesses who work with global partners can also feel more confident with transparent payment solutions.
