Collect accounts logically

To ensure your enterprise's healthy cash flow the collection process should follow a sensible basis. Particular consideration should be given to collecting larger accounts in priority to those of a lesser value. However, it is recommended not to lose sight of the smaller accounts where less effort may be required to elicit payment from the more recalcitrant customer.

Ensure resolution of all disputes

Before you commence telephone calls and letters all possible disputes should have been resolved. This should avoid such tactics from your customer such as the "account has already been paid";"Can you send a copy invoice";We require proof the goods have been delivered"

If, during the course of either of telephone collection calls or chasing letters further excuses come forth then you are able to respond in as appropriate manner. For example, your customer may say "the cheque is in the post". This should elicit a response from you asking "When did you send the cheque". If your customer states a certain date then it leaves it open to you to say "I will phone you on (a date prescribed by you) if the cheque has not been received. Similar tactics can be used should your customer state the following:-

"There is no director available to sign the cheque"

"Our accountants have our records"

If your customer says the reason for non-payment is because they are waiting to be paid by their customer you should ask who they are and how much is to be paid. This is particularly important in Scotland as such information could allow you to arrest (freeze) sums due by that third party to your customer should court action be raised. This remedy is available prior to the judgment. Click here for more information on Arrestments.