As a business, making sure that your customers pay their bills on time can be a big challenge and a huge drain of resources especially if you only have a handful of staff or are a sole operator. Unfortunately, many small businesses are forced to close their doors within a year of starting up, and non-payment of customer accounts plays a large part in forcing a business to close.
Regardless of a business’ size and nature, non-payment is a serious problem. Late or non-payment of debts can cause serious cash-flow problems, resulting in your business facing many problems of its own. From unhappy staff to not being able to maintain supply-and-demand for other customers you may have, this can be a big trouble. However, if you’re experiencing problems with getting paid then there are several steps you can take to ensure your debt recovery doesn’t impact too heavily on your business.
Discussing your clients about their unpaid bills to you can be a bit difficult. However, contacting the customer is very important as there could be a genuine reason why the customer hasn’t settled their bill, and you should always try to attempt to discuss the situation and reach an agreement. It is necessary to consider legal proceedings against a customer in order to collect an outstanding debt.
Read this blog post to learn more about debt recovery: http://www.australiansmallbusiness.net.au/2016/11/fundamentals-of-debt-recovery-in-small-business.html