Tuesday, May 31, 2016

Get Paid With These 5 Collection Tips

No matter what industry you are in, a hinder in cash-flow can put any company in a bind, especially if you are already in a tight spot as it is. Receiving payments for services or materials provided is critical for the success of any business, but there is always the chance that one, or a few, clients are behind on payments or even refusing to pay altogether. 

Unlike the construction industry, many industries do not have tools such as mechanic liens to put pressure on the contractor or owner to remit payment for what is owed, therefore making it much more difficult to collect, and forcing you to explore other avenues to recover a debt.

When a customer or client is skipping out on their payment, a strategic and persistent approach may be required to collect, and sometimes legal action is necessary to ensure you collect what is owed to you. Before the problem occurs, the collection attorneys at The Cromeens Law Firm, PLLC, provide these insightful tips you can implement to ease the collection process.
  1. Prepare yourself ahead of time. Do you know what type of history and relationship your company has with the client? Is collection a reoccurring issue with them, if so, how have you handled it in the past? Knowing the type of relationship you have with the client helps you determine what steps will be most effective in collect on the debt owed.
  2. Be conscious of timing. Chances are that once you have submitted an invoice to be paid, you have also designated a deadline as to when you expect to receive payment. Set a schedule for reminder emails, including an “upcoming payment due” reminder at the half-way point, as well as, a “past due notice” the day after payment was missed. Additionally, keep records of what was sent and the dates as proof in case the matter requires legal action. Your attorneys will ask you to provide copies of these letters or emails should you require legal assistance in collecting.
  3. Consider rewarding early payments and loyal clients. Most business owners are always on the lookout for ways to cut costs. Offering a discount for early payments or rewarding long-time customers who always pay on time could be incentive enough to prompt payment.
  4. Make the payment process simple and convenient. Consider accepting credit cards as forms of payment in addition to cash and checks, and offer an online payment option so your clients have the convenience of making payments without even leaving their desk.
  5. Take action on late payments early on. The longer you wait on a past due invoice, the less likely you are to collect. Follow up with the client as soon as the invoice has reached its deadline. A gentle reminder call or email informing them a payment is now past due will often times be enough for them to take action. 
Once you have exhausted your options and it has become clear that the situation is out of your hands, enlisting the help of a professional collection attorney is your next step. In choosing an attorney, a strong willed and tenacious lawyer is what you need to get the job done. As debt collection attorneys, The Cromeens Law Firm can effectively protect the rights of creditors in all industries. We know what is at stake for you, and we implement an aggressive, firm approach with the party that is refusing to pay.

Our high-quality service is why many businesses seek out our support for collections and to represent them in court on future matters. If you have outstanding debts owed to you, give us a call today to keep your cash-flow on track and business moving forward.

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