C2C Resources Releases Tip Sheet: Four Warning Signs Clients Won’t Pay Invoices on Time

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As businesses grow their client base throughout the year, C2C Resources cautions business owners to be aware of these four warning signs to eradicate slow payment of invoices.

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Very rarely should a slow or unpaid invoice be a surprise to a company.

C2C Resources, an Atlanta-based commercial debt collection agency, released an educational tip sheet today on the four warning signs business owners should be aware of that indicate clients will not pay their invoices on time. Todd Tinkler, President of C2C Resources, believes companies need to proactively track and analyze their clients’ payment habits so they do not have a financially unsuccessful year.

“Very rarely should a slow or unpaid invoice be a surprise to a company,” said Tinkler. “The warning signs of a business hitting rock bottom are clear when you use monitoring software. Unfortunately, monitoring software does not always account for every red flag that you should be monitoring. These four warning signs should serve as a springboard to your self-monitoring efforts.”

The company believes the following are major warning signs when dealing with new and existing clients:

1.    Slow response time to general communication.
While businesses are more likely to focus their energy on clients rather than vendors, a client who never returns calls or emails could prompt a red flag. Tinkler believes that response time prior to invoicing can provide insight into the response time during the invoice process. He suggests when dealing with clients of this nature to always verify the appropriate contact for the account.

2.    Small company size.
While a company should never discriminate against companies by their size, Tinkler believes it is more probable that a client will be slow paying if they do not have an accounts payable department. Mark the client’s account if this is the case so that the business can monitor their payment speed.

3.    Paying from different bank accounts each order.
If a client is frequently changing their banking and payment information, it may indicate that the client is spreading out their assets to avoid garnishments. This means the client is in serious financial trouble.

4.    Requesting invoice deadline extensions outside of the company’s payment terms.
Merely requesting payment terms is never a warning sign. A red flag occurs when the client is requesting payment terms that are either outside of the industry standard or uncharacteristic of their past order history. Tinkler suggests inquiring why the extension is necessary.

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 25,000 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.

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Trey Cefalu
C2C Resources
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