Tips for small businesses for collecting debt
Small business operators know that managing their cash flow is critical to the success of their operations. That’s why its imperative for them to ensure that they are managing their receivables effectively. The following are some tips that will assist small business operators in collecting money owed to their businesses:
- Have a system in place to know when receivables are 30, 60 and 90 days old
- Don’t wait until receivables are 90 days old before you commence collection efforts. The longer you wait the less likely you will be able to collect the amount owing.
- Don’t be afraid to ask for payment.
- Get a specific commitment on a repayment schedule if the debt is not going to be paid in full. Ask for a series of post-dated cheques which will help demonstrate the debtor’s commitment to the payment schedule.
- Get commitments to pay and acknowledgments of indebtedness in writing.
- If after agreeing to a specific payment arrangement and the debtor does not meet it, follow up promptly.
- Keep a record of your collection efforts.
- Always be professional. It might help you retain a valuable customer relationship especially where the customer may just be facing temporary financial troubles.
If you would like to speak with one of our collections professionals today, please or call 613 563 7544.
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