In the perfect business environment, company coffers would be well-stocked, customers would run aplenty, and each transaction made between the two parties would push through without issue. But in the real world, debt is an issue that everyone will encounter.
At any given time, a business owner like you must be ready to confront debt incurred from delayed bill payments, bouncing checks, and the like. You must also expect an array of excuses, wheedling for more forgiving payment conditions, or at worst, being “ghosted” by your customers and left to recoup the losses on your own.
The pileup of such debt is bad news to everyone concerned. As a consequence of the rising unpaid debt, your company will see a dip in its overall net income and heftier expenditures toward your financial recovery. Your customers themselves may risk their credit being ruined or getting cut off from a supply of goods and services that they direly need. The key to resolving your debt problem lies in improving your collection process—which, in summary, involves analyzing payment conditions and policies, getting to the root of each problem, and making it easier for the money to switch hands.
On that topic, here are some tips on creating a functional collections process. Emphasize the importance of obtaining money on time, utilizing all open channels, and being true to one’s word.
In the end, it’s up to you to take control and to claim what is legally and ethically owed to your business. It’s recommended that you do so in a manner that’s firm, of good repute, and of consideration to the goodwill of customers.