Collecting Past Due Accounts in an Erratic Economy
Leading Collection Agency offers businesses tips on improving accounts receivables during down economy.
Marlborough, MA (PRWEB) November 18, 2008
The recent large spike in consumer debt has many business owners struggling to adapt to current conditions and unclear on how to prepare for their financial futures. Companies right now, are in the uncertain position of finding effective methods to collect on overdue accounts without alienating existing customers and damaging their reputations during this nationwide financial crisis.
Leading debt collection agency American Profit Recovery has put together tips to help businesses thrive in lean times and prepare to meet future challenges:
Collect fees at time of service: Layout payment expectations ahead of time. Leaving a customer's home after performing a service or allowing them to leave your location without payment instantly allows time to lapse before that payment is received. This time allows customers to rationalize a delay or completely dismiss payment for an unexpected expense.
- Invoice on a regular basis: This may sound simple but many small businesses do not invoice on a regular basis. Don't invoice just when you have "free time." The most successful way to reach clients with overdue accounts is through the respectful approach of invoices and statements sent regularly in the mail. Set aside time on a regular basis to invoice clients.
- Act early: The longer an account is overdue, the harder it will be to collect. It is necessary to act as early as 30-days past due on overdue accounts. Waiting too long drastically reduces the chances of a business ever getting paid.
- Work towards a resolution: Tough times call for a little flexibility. If the consumer is willing and has remained in contact with the business, try to work out in good faith a payment plan or schedule of payments.
- Get professional help: A well run, creditable collection agency can help improve accounts receivables and dramatically help reduce the staff time needed to chase down past due debt.
A few in-house modifications can immediately improve a businesses' bottom line and help create a sound financial future. That coupled with the professional help from a third-party debt collection agency can mean the difference between staying in business during the economic storm and closing up shop for good.
American Profit Recovery (APR) is an accounts receivable management firm with offices in Massachusetts, Michigan, North Carolina and Kentucky. Founded in 2004, APR specializes in the collection of third-party debt in industries such as medical/dental, banking, trades, lawn care and other professional services. The firm serves approximately 2300 clients. The firm can be reached at 877-634-8900 or http://www.americanprofit.net