Take the simple (but important) steps of sending your invoices to the right person at the right address for payment. And send it on time. Taking the time to clarify this can save a lot of time later on chasing an outstanding account.
Make sure your invoices are designed for ease of understanding, clarity of information, and speed of payment. Pre-emp any questions the payer may raise by including ALL information; and state the exact date for payment, not just '30 days'.
Regularly update your debtors. Develop a system for recording all your telephone conversations and written communications: this will be worth your time. If you have many account customers, develop or purchase a purpose built database application.
Use role-playing to better your credit collection procedure. Try these roles: the manager is a friend, they never got the bill, their spouse handles all bills, they'll pay when they get paid, they're out of work, they'll pay next month, they weren't satisfied with the service, etc.
If you are dealing with large companies, it's worth finding out how and when they pay their debts. If it means changing your own system, it's usually worth it to receive payment on time.
Include a disclaimer on your invoices, like "Goods remain the property of your company until invoice is paid in full". If payment is not received within a specified period, you can always ask for return of goods, as ownership has not been transferred until complete payment.
Develop a game plan for each type of overdue account: with slow payers, the 'squeaky wheel' works best; for problem accounts, identify them early and keep customer goodwill.
Don't waste time in debt collection. The communications need to be precise, with exact arrangements made for settlement. Then act immediately if the promised action is not taken.
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