Collecting receivables has been compared to going to the dentist – but that is unfair to dentists. At least it’s unfair to the dentists I know.
When you enter into a transaction – a simple transaction – you agree to provide products or services by a certain time; and the customer agrees to pay for those products or services by a certain time. Anything outside of that generally costs the other party money in one way or another.
By not collecting receivables when due you are:
- competing with the banks by providing free financing
- foregoing the opportunity to reinvest that money in your own business and earn a return on it
- increasing the risk of total loss with every day that passes
Excuses I hear for not collecting what is due when it is due include the fear that the customer will take his/her future business elsewhere. Is that the kind of customer you want? Quite frankly, you will have no shortage of customers if you don’t require payment!
Call your overdue customers and politely remind them the account is past due. Ask exactly when (date) you can expect payment – and call them back if it is not received. Be firm.
Making collection calls is not pleasant, but successful business owners do not hesitate to collect what is due to them.
Business owners who make a point of proactively collecting receivables are the ones who get paid. If your receivables are overdue, it’s likely your own fault.
JP Roszell and his partner Verne Milot work with business owners who have the burning desire to take their businesses to the next level – whether it’s past the energy-draining and cash-consuming start up phase (which can last for years) or to the level where profitable growth takes place without the owner’s personal day-to-day involvement. Verne and JP work directly with business owners to improve ALL aspects of their businesses.
With regards to selling, JP has had a lifelong passion for sales and sales people. His sales groups have successfully built profitable sales at every company with which he has been associated, from the smallest to some of the biggest companies in their industries. He knows what it takes.
Looking for more than a business coach? JPand Verne are different. They have been there, and if they can’t help you, they will say so.
Call today – JP can be reached at 705.725.4104 or email him at JP@Growth-Associates.com
- Verne can be reached at 905-688-2226 or email him at Verne@Growth-Associates.com