Setting up a foolproof debt collection system for your business is one of the best things you could probably do to your company. With this system, you can improve your cash flow and reduce or prevent financial risks.
And in this piece, we’ll talk about some of the best strategies that you can employ within your company to clear the unpaid debts of your customers and clients. It may sound a lot of work, but this is the kind of work that will save your company’s financial state.
1. Find Out the Root of the Problem
There are a bunch reasons why your clients fail to pay the financial obligations to your business on time. It could be because of poor cash flows or unexpected money problems. Could the reason be poor performance and lack of professionalism on your end – make sure you perform a DBS check online on candidates before you actually hire them! And the more you know the problems that your clients are experiencing, the better you can handle the situations properly.
When handling these kinds of unfortunate events, it’s more helpful if you acknowledge the financial problems that your clients are facing first. If they feel that you’re concerned not only with their debt but also their current struggles, they might cooperate more easily.
Take note, that the solution will not come from you alone. You discuss it with them. Because the last thing you want to happen, is you lose both the money from the unpaid debt and the client.
2. Give Your Clients Options
Now that you’ve acknowledged the roots of the problem, it’s time to develop the solution that would be beneficial to both parties. It’s important to note that you do this with them and not on your own.
One of the solutions you might take is an alternative payment plan. It may yield a slower turnover, but at least you could prevent financial loss. You might think that this plan will only benefit them. But come to think of it, with this solution, you’ll be able to keep the client and maintain the cash flow of your business in the process. So it’s a win-win.
3. Bring Collaterals into the Picture
Of course, understanding your client and sympathizing with them is different from holding them accountable. So aside from whipping up a very good contract, might as well add collaterals into the equation. It’s just wise to do this just in case your client fails to comply with their obligations once again.
4. Arrange More Flexible Terms
To ensure that your client can pay you, you might want to offer them a more flexible payment term. Even though your clients can afford to pay you one-time-big-time, it’s still better to arrange a flexible payment plan. Because you’ll never know what financial problems they might face in the near future.
5. Get Help from the Professionals
It’s okay to run out of options or solutions when solving your financial dilemmas. Your hands are too full to handle these things. That’s why it’s only natural to get a little help from your friends, or professionals for that matter.
To relieve you of additional stress , it’s best that you get assistance from the experts like JMA Credit Control. In fact, hiring them might be more cost-efficient and less time consuming than hiring additional manpower. Debt collection companies like JMA Credit Control can execute exceptional strategies to recover the debts of your clients. They’ve also been doing this for a number years, so you’re assured of higher success rates.
6. Assess All Existing Accounts
Lastly, you should weed out all the problematic clients from the good ones. But this doesn’t mean that you’re letting them go. This will just help you to see the bigger picture of who among your clients need more attention in terms of debt. After doing this, now you can focus your time and energy in handling the problematic account.
Recovering unpaid dues is not something to shrug off. So let the experts at JMA Credit Control handle it so you can spend more of your energy in growing your business and improving your craft.