Collecting overdue and unpaid invoices can be challenging and frustrating. But with a few proven collection strategies in place, getting customers to pay their bills on time becomes easier (and, dare I say more enjoyable!).
Here I’m sharing some collection strategies that have always worked well for me (and I’ve collected payments on A LOT of invoices).
Unpaid invoices? Collection tips for small businesses and SMEs
In a small business, collecting unpaid invoices is generally just part of someone’s job. Someone that hasn’t had specialist collection training.
Getting customers to pay their bills on time, and collecting overdue invoices, is a really important aspect of every business.
It’s Only When Payment Is Received That the Company Has Really Made The Sale
Without payments coming in, it’s just a debt to your company. That’s a step backwards.
Every business needs a few collection techniques and strategies to help it grow and prosper, so knowing how to ask for payment politely is crucial. You can find out more about how to make collection calls in a small business here.
Because it’s such an important part of a business, set aside a little time every day to focus on getting your invoices paid. With a couple of easy collection strategies and some consistency, unpaid invoices will soon be a thing of the past.
When your invoices are paid on time, you won’t have to chase overdue and unpaid invoices. Life will be easier and much less stressful.
5 Proven collection tips
- Call at different times if the gatekeeper is fielding your calls.
- Make friends with the gatekeeper. There are several ways to do this so that they are on your side. If this doesn’t work, we have a clever idea so that you don’t get stonewalled when the gatekeeper recognises your voice.
- Go out of your way to provide awesome customer service first. A collection call should primarily be a customer service call. Your collections team may need training in a better way to handle “debt collection” calls so that the relationship is strengthened, not destroyed.
- Never ask “is there a problem?”. There’s a couple of very good reasons for avoiding this question.
- Asking open questions is one of the most effective ways to improve collections because it encourages the customer to give you an answer.
To your business success!