A Guide To Effectively Managing Delinquent Accounts
Unpaid invoice payments are very annoying since they show customer reluctance to pay and are usually the first sign of a delinquent debtor. Unfortunately, delinquent customers are a strain on a business and can threaten your financial solvency.
Delinquent clients can reduce your cash flow and bring several inconveniences for running your business. That’s why it’s important to take the right measures to avoid such clients in the first place or at the very least, handle them effectively. Nelson, Cooper & Ortiz, LLC is a reputable Houston debt collection and debt recovery service offering agency with a reputation for swift debt recovery and we can help you with the same.
Here’s how you can avoid and handle non-paying clients:
1. Offer Incentives and Charge A Late Fee
The best way to avoid late payments is to provide incentives and punish non-payers. For instance, you can provide minor discounts of less than 1% for early payments. While that’s an enticing carrot, you can make this a two-step process by charging late fees.
This acts like a double-edged sword that allows you to quickly identify clients who are more likely to be non-payers in the future. According to professional debt collection services, this strategy works wonders for their clients.
2. Offer Convenient Modes of Payment
You may have a preferred way of conducting business. Businesses love to operate with cash. However, when you offer more convenient options, you increase the chances of successful payments from your clients. As a successful business debt collection agency, we offer payment in card, cash, and all kinds of digital options for the convenience of debtors.
Apart from providing different payment modes, you can also offer payment options in easy installments. Businesses that are struggling with cash flow have an easier time making payments with EMIs. As a debt collection agency, we often witness increased recovery rates with the EMI option.
3. Hire Professionals
When you fail to collect payments from stubborn and delinquent debtors, it’s best to hire professionals for the job. Professionals have an arsenal of tools and a dedicated team that helps them overcome challenges and swiftly recover their money. For instance, we have artificial intelligence and machine learning tools that sort out debtors in different profiles and help us target them efficiently. This helps us choose a soft approach to recover unpaid debts without harming our business relationships.
Have clients who refuse to pay their debt despite your best efforts? Choose Nelson, Cooper & Ortiz, LLC as your commercial collection agency in Houston to increase your cash flow as quickly as possible. Connect with us at firstname.lastname@example.org or click on this link https://prelitigation.com/request-a-quote to request a quote.