If you are a Small Business owner then at some time your commercial invoice will have gone unpaid. 99% of Small Businesses have experienced late-paying customers. Worse still, many have experienced customers that have not paid anything at ll.
A recent study conducted by the National Federation of Independent business revealed that over 60% of small businesses have outstanding invoices that are at least 60 days old.
With this in mind, we have compiled some small business debt collection tips to help SME owners get paid. You may have provided goods or delivered services. Whatever the problem, your business needs to be paid.
These top expert tips should help your small business invoice get paid. We sought advice from the UK’s Leading B2B Debt Collection Agency. The expert commercial team at Federal Management kindly provided us with some anti-dotes for this sore subject.
Here are your Top 5 tips
Smart Tip 1 – Remind them
Seems very obvious but make sure you follow up on unpaid invoices. If your terms for payment have not been met, send a reminder. Do not feel awkward or embarrassed. You have fulfilled your side of the deal, now it is time for your customer to fulfil theirs.
Some Modern accounts software can be set up to automatically send payment reminders. Usually, the late payment is down to the fact your customer has simply forgot.
Smart Tip 2 – Expect to be paid
Your customer expected to receive their goods or services. Likewise, you should expect to be paid too. It is a simple caveat of business.
Believing that you are always going to be paid by your customers reduce stress. This mind technique also allows you to stay calm when a customer gives fake excuses why they have not paid the commercial invoice.
Delegate the task of chasing your unpaid invoices to another member of staff.
Smart Tip 3 – Pick up the phone
If the agreed invoice terms have expired despite reminders, pick up the phone.
Phone calls are a hard to ignore and maybe you will find out the reason for the non-payment status.
Smart Tip 4 – Stay Professional
If payment is late and you are getting stressed and feeling aggressive, don’t! There could be a valid reason why your invoice is unpaid.
Being reasonable and understanding the situation will help resolve it. If they are in financial trouble then maybe offer monthly instalments, if this is an option. Receiving payment is always better late than never.
Smart Tip 5 – Use a Debt Collection Agency
Most unpaid debts in the UK are now recovered via Professional Debt Collection Agencies. They are not just limited for usage by banks and high street lenders for Debt Collection London. Commercial Debt Recovery is a growing industry with many high-profile companies such as Federal Management assisting companies collect their dues.
The old route of legal action is way too expensive for most businesses. The cost of solicitors and costly court fees is higher than ever. Thousands can be spent chasing just one unpaid invoice with no guarantee of collection.
Employing a Business Debt Collection specialist is the best alternative to this. A professional debt collection agency can help your business massively. For a small fee, they can recoup what is rightly yours.
Whilst Federal management come highly recommended for B2B Debt, Frontline Collections are the No1 Debt Collection Agency for public serving businesses such as Dentists, Private Schools and Vets.