5 Tips for Effective Accounts Receivable Management
Have you ever dealt with clients who pay late or not at all? Most likely, yes: many companies encounter this issue over time. It’s annoying, of course. Fortunately, you can take action if a client doesn’t pay.
Although many employees find it difficult to make contact (you don’t want to damage the good relationship), it is crucial to do so. Non-paying customers pose a threat to your business.
So, cast your doubts aside and get in touch to find out why the invoice has not been paid (yet). There might be a good reason you hadn’t considered.
How to do this? CreditDevice provides 5 tips for an effective phone call in case of non-payment.
01
Pick Up the Phone
This first tip is rather obvious: pick up the phone. It might be a big step, but this way you achieve the best result. Calling often works better than sending reminders by mail or email. Personal contact makes it easier to find out what is going on and why the invoice has not been paid (yet). Additionally, calling is faster than writing a message.
Can’t reach the customer by phone despite repeated attempts? Only then send an email or letter. If the customer picks up and promises to pay but misses this deadline, call again immediately. After all, you had an agreement.
02
The Customer is King
During the call, always ensure you remain friendly and listen carefully. If you find calling difficult, start the conversation by asking if the invoice has been received and approved. This way, you don’t directly ask why the invoice hasn’t been paid but still get an answer. Then, ask open-ended questions and try to get as much clarity as possible about the situation. Be sure to stay assertive. Your goal is, after all, a quick payment of your invoice.
03
Prepare Well
Before picking up the phone, it is advisable to jot down a few things. This ensures you are prepared for any questions. Note for yourself:
- The outstanding amount;
- Any previously made payment arrangements;
- The last contact with the customer (from you or your colleague) and what was discussed.
04
Don’t Wait to Make Contact
Call as soon as you notice the payment term has expired. It’s up to the customer to adhere to your agreements. After all, there’s a due date on your invoice for a reason.
Do you already know in advance that a customer regularly pays late or often claims not to have received the invoice? Call before the payment term expires. Ask politely if everything is satisfactory and if the invoice has been received and approved. If something is wrong, you can take action early. You can send a copy of the invoice or explain it over the phone so that the client still pays within the term.
05
Make Clear Agreements
Ensure that during the call, you make clear agreements about the final payment date. This way, there is a concrete agreement you can follow up on. Note the agreed date in your calendar and take action if payment is still not made.
Is there a dispute, and do you need to investigate something internally? Do this immediately to provide feedback to the customer as soon as possible. Because as long as the problem is not resolved, the invoice will not be paid.
Want to know what CreditDevice can do for you?
Feel free to call 071-3640060 or contact us without obligation here.
