So far we’ve covered accounts receivable management (part 1) and cash flow (part 2). This third part of our five-part series on B2B collections is possibly the most important. Why? Because communication is the foundation upon which all aspects of accounts receivable management stand – or fall.
You’ve heard our mantra before: your invoices (accounts receivables) are your most important asset. How you communicate with your clients, especially when it comes to collections, will reflect the extent to which you value your invoices.
In Accounts Receivables Best Practices: Customer Service we reinforced that point that collecting your receivables in a timely manner is highly dependent upon customer satisfaction, which is truly a measure of the importance you place on customer service. To this end, your most important resource is effective and professional communication both within your company, and with the customer. Within your company you want to make sure your staff understands their critical role in the business, and with the customer you want to communicate with them respectfully and with understanding.
In B2B Collections Best Practices: Preventive Diligence we shared a motivating story about a company that successfully collected at debt from Enron (yes, that Enron). The key to that successful collection was the fact that the company to whom Enron owed money had a defined billing standard in place which the accounts receivable manager diligently adhered to. That same manager was also diligent in communicating with Enron, but did so by maintaining a good rapport and relationship with her counterpart.
In B2B Collections Strategies Part 2: Accommodation And Communication we discussed the importance of not being too rigid or inflexible in your collections strategies. Some customers may be experiencing legitimate issues which impact their ability to pay on time. Offering partial payment plans or other payment arrangements goes a long way toward not only making sure you get your money, but also maintaining the business relationship with the customer.
Finally, we also wrote an article on what not to do when it comes to collections, and it’s titled B2B Collections Worst Practices: How To Make Sure You Never See Your Money Again. It’s worth reading.
The Jayaram Law Group 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.