How to Collect Past-Due Customer Payments

Posted by Ryan Howard on Feb 18, 2022 2:03:39 PM

How to Collect Past-Due Customer PaymentsEnterprise Recovery is a debt collections agency that specializes in B2B account recovery. We do our best to recover what's owed to hard-working companies so they can retain working capital and continue their successful business ventures. We also educate on the best practices required to collect those debts before turning to a professional debt collections company. 

If your company wants to improve its first-party collections, here are expert tips to collect past-due customer payments.

 

Track Accounts Receivable

If your customer payments are past due, your accounts receivable department must be aware as soon as possible. In fact, the best practice is to know before the payments are past due. When tracking your accounts receivable, you'll:

  • Have a clearer picture of your business cash flow
  • Appeal to venture capitalists who might consider investing in your company
  • Be able to plan for taxes, including quarterly payments
  • Grow your business with less stress

Document and Follow a Process

A documented accounting process will help in tracking A/R and when to dedicate collections efforts to the cause. Some recommendations for the process include:

  • When to invoice
  • Who determines the credit policies
  • What payment terms are acceptable

Sample A/R Job Descriptions

Understand B2B Collections

You don't have to lose your business relationships to recover what they owe you. By getting more organized, you can prompt customers to pay early and pay in full. A collections policy will provide guidance on:

Remember, the sooner you know that a customer payment is past due, the more likely it can be collected. Learn how to collect past-due payments faster and friendlier by downloading the free ebook below.Download B2B Collections Best Practices

Topics: Best Practices, Accounts Receivable, Commercial Debt Collection