Improving In-House Collections

Here is a brief guide to helping your own in house collections. If you have any questions, feel free to fill out our contact form. If you feel that have tried everything possible, fill out an account submission form.

First Step - The first step is to make sure your customer fully understands all transactions. If they are paying at a future date or making scheduled payments, make sure they fully understand due dates and the amount of the payments. Let them know the consequences of late or missing payments. Making sure they understand the obligation they have committed to, as well as the seriousness of the obligation, can help make sure they pay on time. Also, they won’t be able to make excuses along the lines of “I didn’t know” when it comes time to pay the bill.

Set up a Plan of Action - Set up a “plan of action” or a set of guidelines within your company on how to deal with all of your accounts. Set up a policy on how and when you will contact your customer. When is it appropriate to call your customer? When will you send out your invoices? If your customer is late paying, will there be a late fee?  Even for non-delinquent accounts, set up a schedule and stick to it. It is also a good idea to keep a record of all dealings with your customers.

Understanding Debtors - There are basically two kinds of debtors: those who can’t pay and those who won’t. Some debtors may come across economic hardship that is making it difficult to pay. Keeping a regular follow up schedule can help make sure they pay once they are able to. Other debtors may refuse to pay. They may dispute the debt or deny all responsibility. These accounts will require much more attention.

Contacting Your Customer - It is a good idea to make sure your invoices are simple and easy to understand. Make sure that your customer will be able to fully understand what they are being charged and why. Blank invoices are provided here.

If phone calls are necessary for payment reminders, make sure you clearly explain to your customer the nature of the past due account and any further consequences non-payment can bring. Do not harass, make threats or false statements. Follow up on any of the consequences you mentioned if they do not pay, make sure they take you seriously.