Four Questions To Guide In Getting Delinquent Accounts Paid

Image via Naypong / freedigitalphotos.net

With the current state of the economy, many business owners are finding it difficult to manage their accounts payable.  One cause of this is the number of accounts receivable that are delinquent.  If you are not getting paid, it makes it very difficult to pay your creditors.  Following are some tips for getting the money you are owed so that you can efficiently manage your accounts payable.  

1. Are you sending an immediate reminder for missed payments?

One way to get your delinquent accounts paid is to send a reminder to the delinquent customer the day after the payment is missed.  Use friendly language, particularly if the customer does not have a habit of being late with payments.  If it is an oversight, you may be able to collect immediately.  If the customer is aware that they have not paid you, you will be catching the problem early before another payment is missed.

2. Are you sending email or postal mail reminders a week before due date?

If you have customers that are habitually late, send them a reminder through email or postal mail a week before the payment is due.  Some customers are late paying due to being unorganized rather than being short of funds.  A reminder before the payment is due may help you get paid on time.

3. Are you making follow up phone calls for late payments?

Follow up with a phone call if you don’t get a payment within a week of sending the reminder for late payment.  It is easy for customers to ignore a letter, but a phone call is more difficult to dodge.  The call may be ignored as well; however, if the customer answers, politely inquire as to when you can expect payment.  If there is a problem, many customers will be upfront in telling you that the payment will be delayed and when they will be able to pay.

4. Are you offering alternative payment options?

If you can be flexible by offering the option of paying the amount owed in installments, then do so.  A small portion every two weeks or monthly is better than a large debt going uncollected.  However, if it seems that the customer is unwilling to work out a plan for repayment, turn the account over to collections.  The longer you wait, the harder it is to recover payment.