Have you ever had a customer promise to send a payment on their past due bill with you, say in the amount of $500 and when it arrives in the mail it is $100?
Unfortunately for you, the envelope went thru the "incredible shrinking room" that exists in each post office. Any form of payment that enters comes out denominated in a smaller dollar amount than when it went in. Fortunately, it didn't go into the "lost in the mail" room where the payments never seem to make it out to you in spite of the customer's assertions that it was mailed and now it is your problem.
Wednesday, July 30, 2008
Monday, July 21, 2008
Hesitant to turn accounts over for collection?
It can be hard and costly to get new customers, clients or patients. Everything that you read says that it is always cheaper to keep existing customers, clients or patients than getting new ones.
While this is true, do you really want to keep those that are not paying you? It is easy to be optomistic about collecting the money that you are owed, sure some will pay and it's a fine line between handling your accounts receivable in a sensitive way so that you keep your customers and avoid alienating them in the process.
Human nature being what it is, your customers that are past due will do one of three things, two of which are BAD. Ideally, you will get paid, that's the GOOD. However, if someone owes you money they may feel bad about it and will quit using your services to avoid dealing with their past due bill or worry that you will refuse to deal with them, that's BAD. Once they have left you, they then have no incentive at all to pay your bill in a timely manner, they are now buying from someone else. That's BAD.
The best way to deal with this is to have a firm credit policy in place, that is have a process in place to collect the money, set a time limit to place an account for collection and STICK TO IT.
While this is true, do you really want to keep those that are not paying you? It is easy to be optomistic about collecting the money that you are owed, sure some will pay and it's a fine line between handling your accounts receivable in a sensitive way so that you keep your customers and avoid alienating them in the process.
Human nature being what it is, your customers that are past due will do one of three things, two of which are BAD. Ideally, you will get paid, that's the GOOD. However, if someone owes you money they may feel bad about it and will quit using your services to avoid dealing with their past due bill or worry that you will refuse to deal with them, that's BAD. Once they have left you, they then have no incentive at all to pay your bill in a timely manner, they are now buying from someone else. That's BAD.
The best way to deal with this is to have a firm credit policy in place, that is have a process in place to collect the money, set a time limit to place an account for collection and STICK TO IT.
Thursday, July 3, 2008
Telephone Tip
When you’re on the phone with someone regarding payment of a bill they owe you, stay on the phone until you are clear about what happens next.
Will they be:
· Paying all or part of your bill?
· Mailing, wiring or bringing it to your office? When, exactly?
· Calling you back, if so, by what deadline?
Be wary when you hear “try,” “do my best,” “think I can,” “should be able to,” or anything along those lines.
Don’t hesitate to pull the plug on an account you can’t collect after 120 days. We spend each day on focusing on collecting your money so that you can do what you do best.
Will they be:
· Paying all or part of your bill?
· Mailing, wiring or bringing it to your office? When, exactly?
· Calling you back, if so, by what deadline?
Be wary when you hear “try,” “do my best,” “think I can,” “should be able to,” or anything along those lines.
Don’t hesitate to pull the plug on an account you can’t collect after 120 days. We spend each day on focusing on collecting your money so that you can do what you do best.
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