Do you have customers who never clear their invoices on time? You are not alone. There are several businesses just like yours whose invoices are not cleared on-time and remain overdue for more than 60 days. If you have too many such customers the cash flow of your business can take a hit.

Here are some useful tips from Kollecto, a leading invoice collections & B2B debt recovery agency for handling customers that make delayed payments.

Send the invoice early

• If you know that a customer is repeatedly making delayed payments, it is best to send the invoice immediately once the product is delivered or a task is completed.
• For faster results, it is always better to send electronic forms of invoices via. email.

Don’t delay the follow-ups

• This is something that we at Kollecto do for several clients whose invoices have been pending for several months and even years.
• It is important to show the customer that you care for your payment through repeated follow-ups if the payment has not come when it was supposed to.
• At Kollecto, an Invoice Collections Company in India, we start by making a friendly call on behalf of our clients or sending gentle email reminders about the payment.
• You need to make sure that you are not too rude or pushy since you can lose the customer.

Working out a payment plan

• When businesses hire Kollecto for debt collection or recoveries, we first understand whether the customer is genuinely stuck somewhere and really experiencing cash flow issues or not.
• If the customer is genuine but cannot pay the entire amount, we offer the installment option for the previous business, but ask our clients to take advance payment or at least part of it upfront for the next one.
• For example, if a customer owes you $20,000 and cannot pay the entire amount upfront, he/she may be able to pay $5,000 every month over four months.

Make an upfront communication

If a customer is repeatedly delaying the payment when you know he/she can pay, it is best to stop doing business with them to make the customer understand the value and quality of the services or products you offer.

If you are confident about the pricing and quality of your products or services, the customer will definitely come back to you.

While handling the toughest customers for debt recovery on behalf of leading businesses and brands, Kollecto makes it a point not to lose the temper on any of our clients. We keep chasing them until they make the payment to our clients who have hired us as their debt collection agency in india.