Late or non-payment of debts can cause serious cash-flow problems, resulting in your business facing many problems of it’s own- from unhappy staff to not being able to maintain supply-and-demand for other customers you may have.
Historically, businesses have always faced problems with customers who are unwilling to pay and during financial difficulties, such as the current recession, making sure your customers pay their bills on time can be very difficult. As the credit crunch takes hold recovering outstanding debts poses a huge problem in such circumstances. Business who are owed money watch as their customers ignore calls, letter and emails and virtually disappear into thin air no matter how many times you try to contact them.
Collecting debt can be a very traumatic experience for any business and the process of contacting individuals and companies that have not paid can take valuable time away from other important business matters and the necessary attention to running the business. On the other hand, trying to contact a customer or client about an unpaid bill can be difficult and there is always a high chance that the person you are trying to reach is simply avoiding you.
However, contacting the customer is very important as there could be a genuine reason why the customer hasn’t settled their bill, and you should always try to attempt to discuss the situation.
According to a study carried out in the collection industry, 30% of bad debt is an outcome of cash flow issues, badly managed credit systems that hold up invoice payments or untrained collectors.
As Professionals we are committed to helping you create powerful and enduring results based on proven, result-oriented methodologies that are anchored to your organization’s objectives by ensuring maximum value.