HOW TO ENSURE YOU GET PAID WHEN A CUSTOMER MISSES PAYMENT

Hi ladies, we love to see your business bloom & so we will share some more tips on how to handle debt collection for your small business.

In this post, we will focus on ways to ensure this money hits our account. Yes ladies, how do you ensure you get paid
after delivering that service? This is actually very important for service providers , where the client says I will give you 50% now or you get paid after you have set up the decor (for event planners & decorators).

Hate collecting your money? Join the club. 

Recent studies shows accounts receivables is the top cash flow concern of small business owners. To ensure that we get paid, we will share some debt collection tips and best practices that you can adopt for your business.

First on the list is:

1. Take a Positive Stance.

Don’t take it personally if your customers aren’t paying their bills on time (remember not to lose your customer service tact ,even when this can seem very difficult to do). Look into why the bill is late. It could be your client simply forgot (always give
the benefit of the doubt, this way you remain positive). 

To help avoid these types of missed payments, provide a gentle reminder immediately following the invoice due date.

2. Empower the right person

As a small business owner, the temptation is great to have the salespeople handle their own accounts receivables, but it’s much better to assign one person to the task of debt collection. Designate your debt collection lead and provide proper support, training, and incentive to do the job right. Also endeavor to have the sales person handling debt collection send invoice emails for your business through a specified email address… E.g account@aytfarms.ng or aytfarmsaccount@gmail.com.
This way, you can actually process all invoices separately

3. Use multiple channels

Email correspondence can easily become buried in an overstuffed inbox. Use additional means of reaching out to your customers who have missed a payment. Picking up the phone is a great first step, whereas a certified letter may be used after weeks of no response.

4.  Sample debt reminder/collection letter

Collection starts when you send the invoice, which should have a due date for payment. When that date passes, it’s time to start thinking about following up with a collection letter. Don’t wait too long. It’s better to send a reminder notice sooner rather than later. Remember, this is money owed to you. The longer you put off collecting it, the more strain it can put on your business.

If you’re not sure what to write, you can use the sample below. Remember these letters are to be short, precise and end with a thank you.

January 8, 2020

Linked Group
123 Lekki Road
Anywhere, Nigeria

Account# or Invoice #:123
Balance due or Past Due Balance:
100,000 Naira

Dear Kola,

This is a reminder that your account balance of One hundred thousand Naira was overdue as of November 28, 2010.

Please pay this amount today, I have enclosed a stamped payment envelope for your convenience.

Thank you for your payment.

Sincerely,

Shade Smith
Linked Group

We remain your support community.

Wishing us a great weekend. Please endeavor to empower a girl child, knowing that when you do so, you build a nation.

Remember you can reach out if you have any questions.