Getting paid on time is a common point of pain for both small and large businesses. It doesn't matter how much sales on credit you make; at the end of the day, money not yet received won't put bread on your table. As a business holder, it is your responsibility to make sure your credits become cold hard cash sooner.
Here are some tips that collection agency in Georgia recommend to speed up your incoming cash flow from today:
Timing Matters
Adding the due date to your invoice is one of the best ways to make a swift collection. The perfect gateway is to invoice as soon as possible, immediately upon the delivery of the product or service. This lets your customer recall that the clock has started to tick.
When and how to follow up equally matters. Never wait until the invoice is weeks late before chasing payment. A good policy that collection agency in Georgia suggests sending out a friendly reminder on the day the invoice is due.
Some larger businesses may process invoices in bulk on certain days of the week or month. It is essential to be in the mind when that time approaches. If the customer is past due, never hesitate to go for an approach.
Be Straightforward
Make sure you and the customer are on the same side of the game. Suppose both parties are clear on when the invoices are due. In that case, the likelihood of late payment due to misunderstanding can be significantly reduced—you're being up-front with the customer regarding the expectation matters to a great extent.
Only verbal agreement may not be enough. Collection agency Georgia signifies an effort to get your terms and conditions set up correctly, perhaps printed on the back of your invoices. For bespoke projects, an ad-hoc written sales contract can be beneficial.
Incentives for early pay
Most collection agencies in Georgia use the scheme of incentives to pay up early. Providing a discount to encourage payment within seven days is one such trick. Usually, 1-2% of the sum of the invoice will suffice. On the other hand, don't hesitate to charge daily interest or overdue fees if the due date passes. However, make sure that others follow such practices, or you might lose your potential customers.
Meanwhile, try not to overboard with late fees. Considering waiving of penalties for the first-time offender. Remember, a few week's worths of interest won't make much difference to your bottom line, and the grace period will show the goodwill side of the business.
Hire A Collection Agency
Debt collection agencies specialize inefficient collection of debt. Besides, they make a sure successful collection of outstanding amounts even from the most demanding customers. Therefore, postponing the decision to involve an agency is never a good idea. Remember, the longer an invoice goes unpaid, the lower there's a chance of retrieving it back.
We recommend that the debt collection agency in Georgia help reduce late payment rates and the time needed to spend chasing the debtor.
