Bad Debt Collection Impacts Your Business
Business Bad Debt Collection
Many times the biggest concern for business owners is cash flow. Spending a little time and being prepared with a system will help eliminate having to turn collections over to a collection agency. By communicating effectively with financially troubled clients/customers/patients as they deal with troubles will help you build a brand champion.
- Clients who will do whatever possible to avoid any payment.
- Clients who would prefer to pay but have run up against hard luck and just can’t at the time.
- Client who would prefer to delay and try to pay small payments and plan to honor their contract.
The second two categories, you will possibly be able to manage on your own. Odds of collecting are greater if you move on these as quick as possible. Send bills immediately and stay on top of overdue accounts. If not you will want to have a plan in place and know exactly when you plan to turn over to a collection agency.
Tips to keep in mind when doing your own collections:
- Be upfront and try not to get personally involved. Stay calm and collected but let them know the urgency on getting the account paid.
- Do not harass the client: Do not leave more than one message per day. Never leave a threatening message.
- Try to Work with the client: If they have been a great client, anyone can be down on their luck so try working out something they can afford to pay.
- Possibly offer a onetime deep discount to be paid immediately.
- Turn it over to a reputable collection agency: This many times should be your first resort instead of your last resort. It takes the stress and time consuming unwanted task off your staff.
MCA would love the opportunity to be your on call Collection Agency. We pride ourselves in superior customer service. Let us do what we do best and make your collections a thing of the past.