No matter go good business is going, you can never guarantee that every single customer will pay their bills on time, but there are things you can do to keep late or missed payments to a minimum in the future.
When one of your customers is particularly valuable to the business, do you tend to be more lenient to their invoices being paid late as to not tarnish the working relationship you have with them or do you choose to be firm? That is the looming question on most businesses with huge client accounts. So, just what is the best way to recover your outstanding invoice?
Give them options
The chances are, if this customer has been buying your goods and services for a while, they probably aren’t avoiding payment simply to be cruel, but more likely because they’re facing issues. Reach out to them and see if you can find a solution such as a payment plan. Ask for a goodwill payment now and the rest in affordable instalments.
Determine just how valuable they are
It is important that you understand what a valuable customer is for your business. For example, it could be a regular customer who buys your goods and services frequently, or one who buys less often, but places large orders when they do. It could be a good friend of the business, whose relationship is highly valued. Or it could be a high-profile customer, whose name could impress prospective clients and lead to additional enquiries. It is up to your business to decide who needs any ‘special treatment’ in the event they fail to pay your invoices on time.
Follow up the invoice. If it has gone past your payment terms, you need to remind chase the invoice, letting the client know that they need to pay for the work that has been completed for them. This can be done via phone calls or e-mails, letting them know that the issue will be escalated if not resolved.
Outsource debt recovery
Outsourcing debt recovery could speed things up when communication comes from an enforcement company and may be settled right away. This also removes you from directly taking a firm stance towards your customer. Swift resolution will always have your business’ best interest in mind. Sometimes all a business needs is a reminder of the impact late payment can have. If they’re a loyal customer and you have historically had a good working relationship with them, then they won’t want to cause you any financial hardship.
If you need assistance with collecting money from a valuable customer while preserving your relationship, get in touch with Swift Resolution on email@example.com or call our team on 0808 145 1886