Doing business with other businesses may seem like it is less risky than dealing with the public but unfortunately, you may still feel you have too many invoices unpaid. First, it is helpful to review your business credit policies from time to time. Another way to reduce unpaid invoices is to ensure you are not overlooking problems that are causing unpaid invoices.
Reviewing your policies
When you extend credit to another business are you running a business credit report? You can potentially avoid unpaid invoices by ensuring the company you are doing business with has a history of paying invoices on time. This single step can save you time and result in a higher percentage of paid invoices. A collections partner can help by providing credit reports beginning at the time of sale. This helps minimize your risk of an uncollected invoice.
Understanding the root causes
Businesses understand the concept of customer service but oftentimes, they do not have the staff to thoroughly follow up on some of the basics. Stop and think about how many payment issues could be avoided if you know the following:
- The client received the goods - if you send a product overseas you need to follow up with the client to ensure they received the item and are happy with the delivery.
- The client received the invoice - some invoices simply get lost in transit. This is a fact. Even if they reach the company the invoice could get misdirected.
- You did not issue a mismatched invoice - if you have a process in place to match your invoice to your customer's purchase order, you have a far better chance of getting paid on time.
Too often, business accounts receivable staff members are buried in dealing with issuing new invoices and overlook the outstanding invoices until they begin aging.