Businesses dealing with overdue accounts often debate the best way to collect those unpaid debts. There are different approaches that work in different scenarios, but it’s a good idea to begin with a few key practices. Here are four best practices businesses can use to streamline payments on overdue accounts.
Start with the Right Customer Information
In the event that you decide you’ve diverted enough resources into chasing down unpaid debt from your customers or patients and you’d prefer to use the services of an experienced debt collection agency, the right customer information is critical. Make it a company policy to obtain detailed customer information, including contact information, a social security number if possible, place of employment, and even a copy of a driver’s license.
Monitor Accounts and Stay in Regular Communication
Stay updated on your accounts so you can contact customers as early as possible once their account is overdue. This gives you more flexibility for finding a reasonable compromise, before things like late fees or interest charges begin to muddy the waters. Remember, the idea isn’t to alienate your customers. Your goal should be working with your customers.
Have a Plan for Responding to Delinquent Customers
There are many reasons why customers aren’t paying for your services. Having a plan and specific responses prepared for some of the most common reasons for payment delays can help expedite the payment process. Plus, it helps clarify expectations, which brings us to our next best practice.
Be Clear about Expectations
Your company policy regarding payments and late payments should be clear from the beginning. Clarifying these obligations will also be helpful if you turn over the unpaid debt to collections and helps ensure the collection agency is on solid ground to maximize your return.
In many cases, dealing with overdue accounts is simply part of doing business. Still, these best practices can increase your chances of successfully being paid. And so can a professional collection agency like Business Professional Collection Services here in northern Nevada. Our team understands how to maximize your return without alienating your customers, and we can make a plan to collect on your behalf in a manner that’s efficient and compliant. If your business is struggling with overdue accounts, contact BP Collect today.