Debt collections may not be the most enjoyable part of back office operations, but it's absolutely necessary. Unfortunately, some of your business clients will miss a payment or more due to various reasons. If you've signed an agreement and fulfilled your part, they still owe you.
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?
The Wall Street Journal is reporting that the number of accountants and university students that are studying accounting is falling. The long hours, especially during tax season, are turning off young recruits. Enterprise corporations are offering college credits and higher pay to entice more people into the field.
Let's evaluate what accountants do at your business and what to do when your accounting team is dwindling.
If you're reading this, it's more than likely because you've done everything you can to get a client to pay, including asking nicely, and they're simply... not paying. You may be wondering if you have any recourse at all and you really, REALLY, need to get back to running your business. Hiring a professional debt collection agency seems complex and a little uncertain. Maybe your only interaction with debt collection was as a consumer and that wasn't a positive experience.
No need to fret. Here are tips to consider when hiring a debt collections agency for your business.
When making the decision to use commercial debt collection services, businesses should be choosy. Not only are you selecting a company that should be efficient in recovering what's owed to you, but your brand reputation is also at risk. The collections specialists will be speaking to your clients on your behalf. It's imperative that they're able to be a fair but authoritative representation of your company.
Here's a helpful guide to choosing the best commercial collection services.
As a business owner or accounts receivable specialist, you may have some fear around sending an account to a debt collections company. For one thing, you're entrusting a third party with your client relationship and your money and facing potentially unexpected costs. You may also have heard some really bad things about debt collections. Enterprise Collections LLC has been helping our clients recover debts for years, and we're happy to answer questions and ease any uncertainty.
Read further as we debunk the fears around using B2B debt collections to get you paid.
The process of collecting what's due from customers can go by several names. Accounts receivable, receivables, A/R, accounts receivable collections, debt collections, and more.
(Not to be confused with accounts payable, which is a different part altogether.)
Many of these terms are not interchangeable but actually define different levels or areas of the process of collecting payments.
What's the difference between accounts receivable and collections?
When you've exhausted time and resources chasing down an unpaid invoice, it's time to send that invoice to third-party collections. If the client isn't responsive to your efforts to connect or they're refusing to pay or cannot pay, it's time to send the account to third-party collections. If you've written off the account as bad debt, it's still time to send it to third-party collections.
Let us help recover what's owed to your business.
Here's how to work with Enterprise Recovery when clients don't pay.
With the federal reserve raising interest rates for the first time in nearly 30 years, economists are expecting a slow down in business growth. They've been talking about a recession for a few years now but then we were hit with a pandemic that shook up everything from the supply chain to the location of the workforce. If you are growing a freelance business, you're likely concerned about what to do if your own business slows down. Is your business recession ready?