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7 Ways to Improve Your Recoveries

Collections are always an issue. Here are 7 ways on how to get your collections up.

1. Get Clients To Antecipate Payments…

How To Improve Collections: Got payment in advance — no pay, no play. If you’re afraid to ask for money up front, maybe you’re not sure of the value of your offering.

2. Stay On Top Of Receivables.

How To Improve Collections: Improving collections begins by staying on top of your billing from the get go. If customers know that you keep a watchful eye on your receivables they will take care of your account first. Regular and consistent contact is the key and most importantly pick up that phone. It is easy to ignore a letter or email but not a phone call.

3. Peacefully Persistent

How To Improve Collections: When you have to collect funds, it’s not an easy task. Be peaceful and persistent.

In these situations, people are usually used to anger or impatience. You can be different.

Schedule consistent messages that are kind, concise and clear. Follow up persistently, so that they know you are not going away. Be positive. Everyone wants to help someone who is nice.

Be peaceful, be persistent, and you will attain the other important “p” word — profit.

4. Ask For Help

How To Improve Collections: ”I’m sorry, we cannot find your payment … would you please submit a cancelled check verification or credit card payment statement so we can update our files?” Customers who cannot find proof of payment are often apologetic and willing to pay asap, when you are kind and not accusatory. Be nice. Get paid.

5. Email Ahead For Pre Pay

How To Improve Collections: I have found great success in emailing invoices to customers along with sending them a copy in the mail. Our customers often have to pass the invoice along to a treasurer, so if it comes in email, they can just forward it quickly.

We also have an easier time collecting on payments that we demand prior to delivery. Its when we give terms that we get into trouble.

6. Be Assertive Not Aggressive

How To Improve Collections: My relationship with my clients is on going, therefore, my approach is friendly and assertive. We make the assumption that they want to bring their account current. We ask our clients, what do we need to do to make it easier for them to bring their account current. My clients are very responsive to this approach and will make a commitment for a specific time frame to make the payment and 9 times out of 10 they do. They like the humanistic approach instead of being treated like a number.

7. Proactively Protect Yourself

How To Improve Collections: To decrease receivables and increase collections, businesses must proactively protect their own interests. First, use a contract with clear payment terms and penalties. Second, enforce your payment terms. You can still negotiate payment terms after the fact, but be the squeaky wheel and make sure you’re getting paid first. Finally, where possible, obtain payment upfront, automatic credit card payments, or personal guarantees from the business owners. These steps help you collect more, sooner.