How to Collect from Non-Paying SaaS Customers

Setting up any sort of retainer or regular payments seems to be a great business model. Subscribers to software-as-a-service are auto-billed or auto-renewed regularly, funding any updates to the product and keeping cash flowing. The challenges arise with missed payments or non-paying customers.

Is there a good way to collect from non-paying SaaS customers?

How Long Can a Collection Agency Attempt to Collect Business Debts?

If your business has sent bad debt accounts off to a collections agency, you likely have questions about recovering that debt.  Typically, commercial collections agencies only charge a fee if they're able to collect.  The agency should also be transparent about the collections process and the documentation along the way.  But you may also be wondering how long they'll work on your behalf before you take the case to court.

How Long Can a Collection Agency Attempt to Collect Business Debts?

 

What's the Best Time To Send an Invoice to Third Party Collections?

Chasing down an unpaid invoice can take away time and resources that could be better served elsewhere in your business. It's important to understand when and how to follow-up on invoices. Obviously you don't want to appear too needy but you don't want your clients getting away with paying late or not at all, either.  And when should you get help from a professional collections service?

When exactly is the best time to send an invoice to third party collections?

Debt Collections for SaaS Clients

The internet allows for businesses to sell the use of software (and hardware) and revenue is collected either yearly or monthly as a subscription service. The as-a-service or subscription business model is sustainable as long as payments are received. Because client retention is very important to this business model, debt collections must be handled with business relationships in mind.

Here are four things to consider when sending SaaS clients to debt collections.

How to Resolve Late Payments During a Pandemic and the Holidays

As if it's not challenging enough to deal with late paying clients, the pandemic and the holiday season can add more stress. Your business may be working to resolve late payments to close out your year. Your clients may be struggling with cash flow shortages due to the pandemic.  Is there a gentle-yet-firm way to ask that your invoices are paid on time?

Resolve late payments during a pandemic and the holidays by using these opportunities to connect. 

Are You Doing Business with a Zombie Company? 🧟

The pandemic has unfortunately hit many businesses right where it hurts. Economists have discovered a current proliferation of businesses who may actually already be "dead inside". Zombie companies earn just enough money to scrape by, acquiring more debt along the way and relying on bailouts to keep going. The problem is that they're unable to afford the cost of the debt and are a high risk to investors. One small blip on the radar, a bad quarter or market event, and they're DOA. 

It's frustrating when your clients aren't paying their invoices on time. When you find that they are actually "walking dead", it can be downright terrifying. 

Are you doing business with a zombie company?

Gain Access to Hidden Cash in Your Business

There's no question that businesses and cash flow have been affected by the recession and pandemic. Some companies have taken advantage of this time to pivot, rebrand or change focus to save their businesses and keep their customers happy. In the middle of all of that, you might be facing the stress of lacking resources necessary to keep going.  You might also be surprised to learn that you actually already have the company funds you need. 

Here's how to gain access to hidden cash reserves within your business.

When Good Clients Go Bad: How to Select the Best B2B Collections Agency

Just like when any relationship turns sour, you're left dealing with the things you couldn't agree on. Unfortunately, when your good business clients refuse to pay or communicate, it may be time to bring in a mediator to ensure your assets are protected and your agreement holds up. Whether you've decided to escalate their continued late payments, write off their account as bad debt or pursue litigation, you don't have to do it alone. 

When good clients go bad, here's what to look for in the best B2B collections agency.

What is B2B Accounts Receivable and Collections?

No matter the type or size of your business, accounts receivable and collections is a valuable part of your operations and cash flow. B2B (business-to-business) accounts receivable and collections, however, is very different than B2C (business-to-consumer) for a number of reasons.  In this post, we will uncover the differences between these two types of businesses and how their receivables and collections processes are different. 

What is B2B accounts receivable and collections?

How to Hire an Amazing Collections Specialist

First party collections, in which your business relies to manage delinquent and non-paying accounts, are a valuable resource to get invoices paid. Getting your invoices paid on time helps ensure working capital and sets your business up for success. In house collections specialists, therefore, are beneficial and necessary, especially in a growing business.

If your company is in need of an amazing collections specialist, read on to learn how to hire one.