Tips for Timely Collections

Most of us would rather buy a new car or go to the dentist than deal with overdue collections. Although we are numbers-oriented, we fall flat when it comes to taking the initiative to collect what's due.

The trick is to act fast. For example, if a receivable is just one day overdue, call immediately to find out if something went wrong. There may be a very good reason, or the sender may indeed be tardy for no good reason.

Still, acting quickly will jog the sender's memory and should help with collections. If the sender says the check is "in the mail," we all know that's usually a red flag.

Wait a few days, then send a letter stating what's due along with a description of the products or services you or your firm/business performed, and ask for immediate payment.

Other tips include alloting time each day for collections and even assigning a staff person to this task.

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