For many business owners and managers, the prospect of chasing payments is met with apprehension. For some this apprehension could come from fear of entering any conversation that could become volatile with a customer, as this runs the risk of damaging the business relationship. However, when done right, chasing for payment (credit control) can add to the customer relationship rather than detract.
One of the first ways to do this is to ensure that you are using your time effectively. Not only will this help to build a positive rapport with a client, but you will also ensure that your time has been well spent and not wasted.
Organise your chasing by due date and value
Outstanding payments should be organised by due date first and foremost and then by value. Payments that are overdue are obviously a priority when it comes to chasing, and in organising these outstanding payments by their value, you increase your chances of receiving higher value invoice payments sooner.
Look back over the history of your chasing
Ensure you aren’t revisiting the same discussion time and time again by making notes during a call, and looking over said notes each time you contact a customer again. This is particularly important if there is more than one person responsible for chasing, as it will reduce the risk of annoying a customer by covering the same discussion they have had previously with your colleague.
Use a variety of chasing methods
Whilst sometimes emailing a client may seem like the easiest and quickest option, the back and forth communication can sometimes span days if not weeks, discussing topics that could be covered in a simple five-minute phone call. Therefore, we would recommend that you use a mixture of chasing methods, starting with an email, proceeding onto phone calls if payment remains outstanding and even sending letters if invoices continue to remain unpaid.
Effective credit control is a vital part of every business, if your business is struggling to collect payments from customers, the expert team here at Zodeq can help.
Our Zodeq 360 service provides a variety of administrative services to reduce the burden of these time-consuming tasks on your business, speak to our team today to discover how we can benefit your business.