Minimizing time wastage in the collection process

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Collecting payments from clients can be a time-consuming process. Most clients can be expected to settle their balance in the normal course of business. They will, however, be affected by various factors. Keeping track of payment arrangements with each client will prove to be difficult unless businesses develop an effective strategy.

In general, there are a number of established methods for collecting debts owed to the business. The methods that companies use depend on a number of factors such as their relationship with the client, the reasons for non-payment, and their own financial situation.

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Relying on notices of late payments alone leads to a lot of time wasted. Letters are the least effective collection technique because people know the strategy behind it. If a client receives a gentle reminder then it is obvious to them that they have more time before they actually need to pay.

Collections can be done better in person or through the phone. Not only does this type of approach reduce the lag in communications, it also allows the business owner to immediately respond to any issues raised and get a firm commitment from the client on the date of payment.

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An aggressive approach to collections may be more effective at allowing businesses to reach desired goals. However, it comes at the risk of ruining a good relationship with a client. For that reason, threatening legal action for collecting debt may not make sense for important clients and close associates.

When dealing with large companies, businesses may need to adjust their collection methods and timing to jive with the schedule of the client. This may involve finding out the schedule for getting an invoice approved, the documents they need, and if they require a regular follow-up call.

Brennan and Clark is a commercial collections agency with a management team that has been together for the past 20 years. For more information on its services, visit this website.