Ideally, customers always pay on time. Business owners never have to worry about cash flow problems or bad debts. However, this isn’t the case in the real world. Many businesses are under pressure of payment delays and bad debts. Streamline your accounts receivable procedure and have a professional handle delinquent debts would largely improve your accounts receivable system.
Usually, accounts receivable process starts from offering credit accounts to customers. The most important process is running a credit check against your customers, working out their credit history, drawing a clear picture of their past payment records. Let customers fill up a credit application form, assess their credit application and approve credits only to customers that have a good record. Ideally, you should run this process not only for new customers, but also for existing customers when they need to increase their credit limits.
After a credit account has been approved, next thing is to set clear trading terms and limits based on the customer's credit history and information from the credit application form. A good debt collection agency should be able help you with credit checks, assessing the application form and offering suggestions.
Once the above are all set, it will be good to start trade, remind your customers when invoices are fell due. Worry about phone call to chase customers? A good email reminder will do.
Finally, it just happens that there are clients not paying invoices. Thus, you will need debt collectors to assist. Generally speaking, debt collection agencies are more active than debt recovery lawyers because of their commission incentives.
Here with Xservices, we work proactively to recovery your money, specialise in small business debt collection and commercial debt recovery for all size of businesses. Head office in Melbourne, services cover VIC, NSW, QLD and WA, provide professional collections services and are trusted by thousands of local businesses.
If you need any assist in terms of credit check, assess customers credit application, please do not hesitate to let us know.