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.
A typical services contract requires a retainer or ongoing payments. Businesses selling software-as-a-service (SaaS), or anything else "as-a-service," rely on monthly or annual fees from subscribers. If those subscribers fail to meet their obligations, their accounts can be sent to collections for recourse.
Non-payer churn is one of many reasons that Saas companies need debt collection services.
Every industry has its own share of jargon, acronyms, and special terms. There's a level of trust that's gained when a business partner understands your industry or "speaks your language." When companies seek out debt collection agencies that they can trust, they also want to work with those who understand their industry.
When a debt collections agency speaks your language, B2B account recovery can be more successful.
When your business has a late-paying client, follow-up calls must be handled quickly and with conviction. Late or non-paying clients cause your business to write receivables off as bad debt, and they could cause the deterioration of your business relationships. Or you could escalate to a professional B2B collections agency that values your business relationships and your cash flow.
Are You Taking Too Long to Collect on Receivables?
Does it actually cost more to attract new clients than keep current ones? That can only be decided when you consider the cost of your time and the value of your clients. Nevertheless, happy clients are usually your most loyal clients, and they'll likely recommend your goods and services to others. Let's identify strategies for keeping your existing B2B clients happy so you can maintain a strong, long-lasting business relationship and save money along the way.
Happy B2B clients save your business money. Here's how.
As a business that works with other businesses, the expectation is that they'll pay for the goods and services you're providing. Unfortunately, delinquency and debt in business relationships is a very real, all-too-common problem. If you pay attention, there are glaring red flags that could provide clues that some clients could be problematic.
Here are six types of risky B2B client behaviors that might indicate they won't pay on time.
Losing a client after establishing a relationship and putting in work efforts can be disruptive to any organization. It's especially painful if you're working as an independent contractor, freelance, or as a growing business. The loss in revenue may mean that you need to find another client immediately. There are some practical steps you can take to bounce back.
Here's how to recover after losing a client, especially when it might affect business income.
While we typically write about the end-of-the-year processes for accounts receivable, year-end brings about its own stress for the sales and marketing teams. With quotas to meet and budgets to assess, the challenges can weigh on even the most seasoned professional.
Here are four tips for B2B sales and marketing professionals to end the year strong.
When it's your job to collect past-due invoices, what you say matters. And what you say will depend on your state of mind when you type the email or get on the phone. How you come across to your clients, especially when they're long-term business-to-business relationships, will determine how they react to you, your demands, or any negotiation tactics. It's important that you're well-prepared.
Here's what to say when collecting past-due invoices.
When selling your goods and services to another business, it's wise for both parties to sign a legally-binding agreement. This agreement will set expectations for both parties as well as provide proof of the arrangement if one of the parties doesn't come through. A contract is an invaluable record that you and your business client are willingly working together.