|If you own a business chances are you have had problems with late paying or non-paying customers. You have heard every excuse in the book: “I never received the bill.” “This isn’t want we ordered.” “The check is going in the mail today.” However day after day the bill continues to go unpaid, let’s face it there is no check in the mail. Why do customers think it is okay to receive services and products and ignore the bill? There are several reasons why an account can go outstanding.|
Businesses should always ensure the customer is satisfied with their order. One of the most common reasons a customer doesn’t pay their bill is because they were dissatisfied with the service or product. If this is the case, talk to your customer and find out exactly what they were unhappy with. They may only have a small dispute that can easily be fixed. See if you can come to some sort of agreement with them. If you are unable to come to an agreement with the customer you may need to hire a collection agency to work with the debtor to come up with a solution.
If you find yourself in a situation with a customer who is facing financial problems you are going to want to confront this client immediately. Talk with the customer and see if they can set up a monthly payment plan until the account is paid in full. Although it will take longer to pay off the bill, partial payments are better than no payments at all.
Another reason the debtor may not make payment on their account is because they never received the invoice or statement. When working with a customer, businesses must make sure they have the most current contact information for their customer. They should invoice properly and send out statements regularly. Emailing a copy of the statement after mailing it out is also a good practice for a business.
Sometimes the customer just doesn’t want to pay. They may have the funds to cover the bill, they may have been happy with your services but they just don’t want to pay. Some people think they can get away with not paying and that they deserve to receive products and services for free. Well this is not the case. This type of customer should be turned over to a debt recovery agency immediately. The third party agency will contact the debtor until the account is paid and will not take any excuses. To help avoidoutstanding accounts receivable, business owners should invoice properly and outline the payment terms on the statement or invoiceso customers know when payments are due, payment methods accepted and consequences for nonpayment.