Running a small business comes with its own unique challenges. Cash flow is extremely important, but sometimes it can feel like pulling teeth to get your customer’s to pay up. There usually isn’t a large team hovering over those who haven’t paid, so small business credit collections can become overwhelming.
There are simple ways to fix that overwhelming feeling, whether you’re the owner personally dealing with your small business credit collection or a one person credit collections team.
- Have an invoice schedule
Your clients shouldn’t have to guess each month when the invoices will show up. It is best to send your invoices at the same time each month. That way, clients will know when to expect it and have budgeted for it. You can expect to get paid in a more timely manner if your clients have been given time to prepare.
- Send e-invoices
Why are you wasting all that money on paper invoices anyways? If you’re printing out, envelope stuffing and stamping just to send out monthly invoices, you’re wasting your time and money. Sending e-invoices is less costly and it can guarantee that the right person will receive it almost instantly.
- Institute a late fee
In small business credit collections, sometime it is necessary to institute a late fee. It may not always be your favorite option, but if clients are repeatedly paying late it may be the best option. Let them know that after a set date of non-payment they’ll be hit with a late fee. That may get them to pay up faster.
- Use an accounts receivable software
Since small business credit collections teams can be on the leaner side, an automated accounts receivable software can help tremendously. Instead of spending half the day finding which customers owe in a spreadsheet and preparing for those calls, an accounts receivable software automatically shows who owes and logs call information for future use. You can also send out automated invoices and emails.
In small business credit collections, there isn’t a lot of time or people to cover all of the delinquent customers and unpaid invoices. Following these tips will cut down on the time it takes to get all of your credit collections tasks covered, which will get you paid faster.