In this three part series of B2B Collections Strategies we’ll discuss various approaches you can employ to make your accounts receivables management more efficient, and more effective. In this first part we’ll present some general guidelines on how to strengthen your customer relationship and the collections process from the get go.
- Meet your new customers in person in order to set the stage for the business relationship and the process that will maintain it. Outline the terms of the sales agreement in person. Both you and the client should initial each page of the agreement so as to reinforce the payment terms.
- As part of your payment agreement specify that interest will be charged for past due payments. This will act as an incentive for your customer to pay on time.
- Ask your new customers for credit references. You may also ask that the customer provide a credit card that can be used as a backup form of payment. Leverage this arrangement by specifying that you will add a certain small percentage to the payment amount due should you have to use the credit card.
- Build a relationship with the customer. Dedicate a member of your staff whose communication style is professional and friendly, yet also diligent. They should get to know the customer’s accounts payable contact or staff.
- In the event collection calls need to be made, be watchful for avoidance. Phone calls and emails that are not returned can be an indicator of bigger collections problems.
- Be diligent and be accountable throughout the entire process from initiation of sale, to timely invoicing, and above all consistent communication.
The Jayaram Law routinely and successfully assists its clients in their business-to-business (b2b) collection needs. We take pride in obtaining payment on accounts receivables without fracturing critical business relationships or engaging in time-consuming and costly litigation efforts.
If you need business debt collection services conducted in a professional manner, contact our B2B (business-to-business) debt collection law firm by calling 312.454.2859 or visiting www.jayaramlaw.com.