By having a signed and binding contract, it will save your company time and money trying to follow-up on unpaid invoices. The less of a surprise the payment process is, the more likely the customer will be able to pay promptly.
Atlanta, GA (PRWEB) August 12, 2014
C2C Resources, an Atlanta-based company that helps businesses minimize bad debt through commercial debt collection, recently discussed a solution for businesses who struggle with late paying customers. The company believes that no matter how well a business knows and trusts a customer, adding a contract to a project can be a resource when encouraging prompt payment.
A recently released article in Forbes, titled “Getting to Grips With the Late Payment Problem” (July 22, 2014) by Trevor Clawson, found that according to a study by Satago, 24% of Britain’s small and medium sized businesses believe late and non-payment are increasing; the majority of the businesses found that there was no change in the situation, but that it was not improving.
Todd Tinkler, President of C2C Resources, believes that while reports show businesses in the United Kingdom are struggling with business payment issues, he has witnessed this being an extremely prominent issue within the United States as well. “Businesses need to understand the ripple effect that their late payment has on others. Being proactive and spelling out the terms of payment are essential. It will show them you are serious about getting paid. ”
C2C Resources suggests incorporating a written contract into the purchasing process to provide clear terms of service to the customer and minimize late payment. Within the contract companies should list when the payment is due, if there is a late fee and the accepted methods of payment. They should also request two points of contact within the customer’s accounts payable department for ease of contact.
“By having a signed and binding contract, it will save your company time and money trying to follow-up on unpaid invoices,” explained Tinkler. “The less of a surprise the payment process is, the more likely the customer will be able to pay promptly.”
For more information and best practices for prompt payment through contracts, visit: http://www.c2cresourcesblog.com.
About C2C Resources:
C2C Resources is a global Commercial Debt Collection agency headquartered in Atlanta, Georgia. The company collects commercial debt on behalf of their over 20,000 clients and is considered one of the top agencies in the country. The executive team at C2C brings more than 60 years of experience helping businesses collect their accounts receivable.
C2Cs powerful combination of Profit Maximizer, InfoMax Collection System, and Legal Forwarding Edge, can help your company be more effective with your own in-house collecting and maximize recovery of accounts turned over for collection.