Commercial Collections Blog

Short Steps to Avoid Getting Short Changed

Not everyone can afford to have a team of in-house collectors handling and chasing after past due AR. Having a small business means that you have to be able to run your company to the best of your ability and only hope to have to reach out for help in desperate times. It also means that you may count on every single one of your customers to pay their bills on time in good faith in full. There are a few steps you can take to protect yourself and your business to avoid going into the red on your books.

  1. Pre-screen and Pre-Check

    Pre-Screen and Pre-Check

    Pre-Screen and Pre-Check


    You may have a steady flow of current customers, some that have been buying from you for years. But it is inevitable to grow as a business without gaining new customers. When business is slow, you may be eager to transact with any new client, but sometimes it may be in your best interest to take your time and check out their credit history. If you are not able to perform your credit checks, you can enlist a contract with other business entities to run the credit for you. If you decide to hire another agency to do the background checks, verify if they can check company history or just the personal credit on the individual. Depending on the nature of your work, both may be needed. If you don’t think credit checks are a good route for you, demand cash up front.

  2. He Who Documents the Most- Wins.

    He Who Documents the Most- Wins.

    He Who Documents the Most- Wins


    There are many websites online that can assist you with simple contract or credit application wording. Some collection agencies may also be able to help you. This tool is not meant to impede the amount of time it may take to transact business, but rather it is used to protect you from future problems of unpaid bills or damaged equipment. In case you do have to go through legal courts to obtain your money, having a signed agreement detailing to work, product or services done can be your best proof of an incurred debt.

  3. Follow Through and Follow Up

    Follow Through and Follow Up

    Follow Through and Follow Up


    If you have Net 30 terms with your customers, you must be consistent with your billing process. Don’t fall behind with mailing or emailing your invoices just because you expect your customers to be diligent and pay on time. If you bill them late, you can expect to be paid late. Reminders will also benefit you from having to chase down your clients later. If you notice that after your reminders and invoices have gone unnoticed, it is time to write an in-house collection letter. You don’t have to be strict and overbearing, but the longer the invoice goes unpaid, the more intense your letters should become. Frequent phone calls can also enhance the seriousness of a situation. Unanswered phone calls may also be your number one red flag that your client no longer has any intention of paying their bill.

  4. Call the Pros to Solve Your Woes

    Call the Pros to Solve Your Woes

    Call the Pros to Solve Your Woes


    You don’t have to wait until the end of the month or even end of the year to call an outside collection or legal counsel. Especially if you have to pay a part of the collected money to an agency, it is much better than not receiving any of the past due accounts and writing it off at the end of the year. Make sure that you research or get a referral for a good company to collect for your business. Just as there can be bad customers that run away with your money, certain individuals like to run a scam and will never pay you the money that is rightfully yours. Finding a reputable collection agency is key to following laws and ensuring that you gain back your potential losses.

For more information on the process of collections or if you have a past due account in question, call the experts at Burt and Associates today 1-877-740-7839 or request an online quote