They’re some of the most important phone calls your Finance staffers make in a day – the ones to get your money out of customers’ hands and into your bank account.
Credit and Collections
Most managers just assume their seasoned A/R staffers can distinguish between what’s true and what’s simply a myth. But you’d be surprised how many “collections myths” are still regarded as pure fact.
In a perfect world, A/R would always be busy receiving payments from your customers and there’d be no lag between making a sale and getting the payment. But, unfortunately, that’s not the case.
If your Collections department doesn’t have the time or resources to send out those gentle reminders to late payers, you may have success with these tactics.
Many customers are adopting a new motto these days: "What’s mine is mine; what’s yours is mine." Put a stop to that pronto.
Training’s important to build skills, improve retention and show your staffers you think they’re valuable. It also takes a big bite out of the budget.
Getting cash from past-due customers has never been such a struggle.
Many finance pros will tell you “Not much changes in Collections.” And that makes your job that much tougher.
A huge customer falls behind, busy season runs slow, inventory’s mismanaged — there’s no shortage of factors that can result in an unexpected cash-flow crunch.
Granted, sending out a final demand letter is something no Collections department wants to resort to — and some collectors even think of the tactic as a formality or a Hail Mary. But these letters can be effective.
Even if your company is one of the lucky ones that continues to thrive, chances are many of your customers aren’t in the same boat. Here’s help for dealing with those perennial late payers.
Staying extra vigilant for these signs that a customer is struggling could help avert disaster before it’s too late.
Here’s a question finance chiefs often struggle with: Has come to turn over a dragging customer to a third party collector?
A majority of businesses are now accepting credit card payments from companies — but how often?
Finance deals in numbers all day. But how often are you generating numbers to find out how efficient your finance team is?
Having trouble recovering past-due amounts from a troublesome customer (or customers)? Before you get Collections to call in the aid of an attorney, try this tactic.
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