Unpaid invoices are the worst! While it's easy to react negatively to your late or non-paying clients, each invoice may require its own way of dealing with it. You can start proactively, including establishing a consistent invoicing process and following up as quickly as possible. However, if you're lacking the resources or your prevention strategy isn't working, it's time to try something new.
Here are three ways to recover unpaid invoices.
Accounts Receivable Collections
Sometimes, late-paying invoices or small balance invoices get pushed to the back burner. This is especially true if your business is booming, your business has been merged or acquired, or if you're still building out your A/R department. The good news is that you can outsource your accounts receivable collections or work with a third-party agency to help with accounts receivable clean-up. Both of these options alleviate the burden of following up on these unpaid invoices and offer a boost to your cash flow.
Bad Debt Collections
When your business relationships matter, an unpaid invoice is especially frustrating. You don't necessarily want to damage the relationship, especially if you need their business to help grow your own. You might be hesitant to hire a neutral party for bad debt collections services. A B2B or commercial collections agency understands your hard-earned relationships and will focus on recovering your hard-earned dollars while respecting your client relationships and communication.
Commercial Litigation
No business hears the word "litigation" without considering the cost. If another business already owes you money, you don't want to pursue legal action unless you know you have a shot at winning. You don't have to do it alone. Commercial collections should include legal review and access to collection attorneys. After all, a professional business collections agency understands what's necessary to prove your case is solid so you have a solid chance at recovering what's owed to you.
The point is, you're not alone when it comes to recovering unpaid invoices. An agency that specializes in commercial collections can help whether it's a single invoice of a small amount, a whole list of forgotten invoices, accounts that have been written off as bad debt, or a client case that may need a lawyer. At Enterprise Recovery, we've got your back. Let us know how we can help.
