With unpaid invoices stalling post-covid financial recovery for many small businesses, we have complied a list of 6 top small business debt collection tips. Tips for Small Business debt recovery can be of great value especially when faced with a customer that has not paid.
Whatever, the situation, the sme debt recovery tips detailed within this article can help you or your small business save time, stress and costs when it comes to recovering unpaid small business debt.
We have sought the kind assistance of leading Small Business Debt Collection Experts Federal Management to advise on the best way to make telephone calls.
Small Business Invoices
If your small business invoices remain unpaid, you need to step out of your comfort zone to ensure you get paid. You can possibly face the risk of not getting paid at all otherwise so not acting should not be an option.
If emails and unpaid invoice letters have been ignored, you need to make some telephone calls to resolve the situation or at least understand why your invoices have not been paid.
Unpaid Invoices kill thousands of small businesses every month in the UK. Many of them could have been saved if they had only took pro-active action to collect what was owed. At the very least they could have employed the services of a professional business Debt Collection Agency to assist them.
Simply by making telephone calls to your customers that have not paid can very often result in getting payment. Many Small Business owners shy away from doing this as they do not wish to appear ‘confrontational’. If you have delivered goods or services then at the very lease your Small Business should expect to be paid on time.
Make Telephone calls
Phones calls can be made via landlines or mobile phones. Many small Businesses operate solely via mobile phones. iPhone 14 Pro monthly contracts offer great value for money for many SME owners.
These are the top seven tips as assisted to us by Small Business Debt Collection specialists Federal Management.
- Be prepared
Before telephoning your customer, ensure you have all correct documentation, invoices in front of you. Know exactly why the money is owing, know the exact amount and when payment was due.
2. Get ready for late payment excuses
When speaking to people that owe money, you will likely encounter excuses for the late payment. These will vary from the weird to the wonderful. Its just part and parcel of life for some. Be on guard against spurious delay tactics and be firm where appropriate.
3. Make a record of your telephone conversation
End the end of your telephone conversation, make sure you make a record of what was said, promises made, excuses given etc – This will help you keep a clear picture of the situation and could also come in useful further down the line.
4. Remain professional and positive
Even if you become perplexed at your customers attitude towards the money they owe you, try not to lose your cool. This will give them an excuse not to pay if you you become irate.
Here is the truth. Not every call you make will result in you getting paid, far from it. So be prepared for all outcomes and deal with them in a professional manner.
5. Always ask open questions
Never ask closed questions. Get your customer to explain why payments have not been made. You need to know what is going on and understand the customers situation as to why invoices have not been paid.
6. Be flexible to get paid
It could be that your customer is not in a position to pay the full amount. If possible, make a short term repayment plan. Something is better than nothing and your customer could genuinely be under financial duress due to no fault of their own.
7. Follow up on your phone call
Follow up on your phone call with an email to confirm any promised dates of payment or dates for a repayment schedule.
It will avoid any confusion or ambiguity thus eliminating the possibility of further delays in getting paid.
If your Small Business is suffering from Unpaid Invoices, then it is always worthwhile speaking to a Professional Debt Collection Agency.
Small Business Debt Collection
Top Expert Debt Collection Agencies like Federal Management speak to thousands of business debtors every week and take the strain of recovering unpaid small businesses invoices.
Chasing payment is a very frustrating and stressful task. Very often it is hard not to take it personally when somebody does not pay you for goods or services you have provided in good faith.
That is why sometimes it is better to call in the experts for help. Hiring a Professional Debt Collection Agency can bring a variety of benefits. Not only will it protect your mental health and stress levels, but it will likely boost your bank balance too.
Adopting a pro-active stance to ensuring invoices are paid will maximise the cash flow within any small business.