Being a small company in the current economy definitely is not easy. SMB's financial uncertainty is exacerbated when customers don't pay outstanding bills. Because of this, it's wise for a company to implement collections software to prevent this money owed from accumulating.
"It’s a hard pill to swallow, but some of your company’s policies and procedures could be hindering the debt collection process," a blogger wrote on a software company web page. "In any case, it never hurts to take a hard look at them. Are you being clear about payment due dates? Are you sending complete, professional-looking invoices? Are you sending payment reminders on a regular basis? If not, customers might not take your debt collection efforts seriously."
Other advice from this writer included:
- Always keep cool with collecting debts. After all, it is a business transaction and should not be made personal.
- Stop doing business with those who don't pay in a timely manner often, as it will only cause trouble in the long term.
- Have a policy for working out payment plans with those who owe money, as it is for the best to get this money back gradually than to lose the whole amount.
There are a wide array of debt collection resources and strategies that can help bring in the money businesses are owned, but each company has to understand what will work best for it, and how to most effectively integrate a credit collections management software solution. In-house collections are usually fairly difficult, but business can make this much easier by adopting some quality software to help take much of the burden off of the process.