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Getting paid in a timely manner and avoiding collection problems are some of the benefits of a credit transaction. However, when you extend credit, you may have to deal with past due accounts, past due invoices or past due statements. A key strategy to ensure your accounts are settled quickly is to implement policies that ensure timely and persistent follow-up on those customers whose accounts are past due. In some cases, you may need to report past due customers to the major credit bureaus, and even locate customers who are avoiding settling their bills using skip tracing techniques.

Articles:
1 - Before You Start Work
2 - Billing and Credit Terms
3 - Invoicing and Follow-Up
4 - Collecting on Your Invoices


Bill Collector in a Box™ centralizes all your past due customers and ensures that all appropriate bill collection steps are taken: from initial invoicing to reminder letters, processing credit cards and e-checks (with no additional equipment required), credit bureau reporting, reporting bad checks to the Shared Check Authorization Network (SCAN), and effective skip tracing measures. Bill Collector in a Box is the ultimate small business solution for all of the business owner's invoicing and collection needs. The easy-to-use bill collection software program provides business owners with the tools and know-how to solve their billing and collection problems quickly and effortlessly with a click of the mouse.

For more information, please call us directly - we will not keep you on hold and we do have fast answers to your questions. Dial: 800-650-5118 If you prefer email, address your correspondence to: sales@billcollectorinabox.com

Many credit collection problems, such as past due accounts, past due invoices or past due statements, can be avoided simply by making certain that the proper information is obtained from your customer before you conduct the credit transaction. By obtaining the proper information upfront you can avoid using skip tracing tools that enable you to find your customers if they move or if their telephone is disconnected. You may also avoid having to report your customers account as an unpaid account on their credit report. Following these simple tips can dramatically reduce the time involved in maintaining a current accounts receivable ledger.

Tips:
Collect personal and business references with name, telephone number and the reference's relationship to the applicant.

If it is a business account, ask if they use purchase orders. If they do, record the purchase order number on the invoice.

Do not take post-office boxes or private mail boxes as ship-to or billing addresses. Make certain that you have a real street address of the business.

Obtain home, cell (nowadays, everyone has one) and work telephone numbers from your customer.

If you are extending credit to a business, get a personal guarantee from the owner. When dealing with someone who is not an owner of the business, make certain that the person is authorized to conduct business on behalf of the company.

Ask for and verify bank and credit references before the first sale. If possible, and with the proper authorization, run some type of credit report which will tell you how they handle their financial obligations.

Post your return check fees on or near your checkout counter, on your website, or in your contract.

Bill Collector in a Box™ is the ultimate small business solution for the business owner's needs. The easy-to-use bill collection software program allows the business owner to track all of their customer contact information along with all invoicing and payment information, in one secure and easy-to-use database. With a few clicks of the mouse you can send a customer an invoice, a reminder notice or, if needed, a notification that their late payments are being reported to the credit bureaus or Shared Check Authorization Network (SCAN).

Most businesses have to deal with customers who become collection problems and are unwilling or unable to settle their invoices. Extending clearly defined payment terms to credit-worthy customers, and fully explaining the credit transaction, will minimize your past due accounts, past due invoices or past due statements. It will also keep you from having to report their unpaid account to their credit report. Additionally, they are more likely to tell you if they move and/or change their telephone number, which means that you will not have to spend time skip tracing (locating) them. Following these simple tips can dramatically reduce the time involved in maintaining a current accounts receivable ledger.

Tips:
Always obtain a Social Security Number (SSN) or an Employer Identification Number (EIN) for those invoices with credit terms, or with customers whose dependability is in doubt.

Offer credit terms that work for your customer but that also meets your cash flow needs.

Place a sentence at the bottom of your invoice or receipt that reads: All past due accounts xx days or greater past due may be reported to the major credit bureaus as an unpaid collection account.

If it is a mail order purchase, make certain that you require a signature or delivery confirmation from the customer.

Offer a prepayment or "early out" discount on invoices with terms.

Set credit extension guidelines and limits based on the risk that you are willing to take, and always stick to those guidelines.

Big sales are exciting; but be wary of unknown or new customers seeking large orders on terms or with unsecured funds (e.g. personal check). Thieves know that a big order will get them past some of the normal scrutiny faced by businesses due to the excitement factor.

Timely invoicing and follow-up of credit transactions should result in fewer collection problems, which in turn will result in fewer past due accounts, past due invoices or past due statements. Because you will have fewer past due accounts to credit report and to locate using your skip tracing tools, you will have more time to devote to revenue-producing activities. Following these simple tips can dramatically reduce the time involved in maintaining a current accounts receivable ledger.

Tips:
Add a bold due date to your invoice. Make a courtesy call to verify your customer received your invoice. This is especially important if this is their first credit transaction with you.

Make certain that all customer service issues are immediately addressed and they cannot later be used as an excuse for withholding payment.

Do not accept temporary checks with handwritten account numbers on them, or checks numbered less than 200.

If the credit transaction is being done in person, verify the customer's ID. If the credit transaction is being done over the telephone, attempt to verify the customer's information via telephone directory, Google search, Zaba search, etc.

Have the customer sign and date the invoice or bill to ensure protection against fraudulent charge-backs or stop payments.

Start collection efforts immediately when the account or invoice becomes past due. Even reputable companies and consumers run into financial difficulties, but it's important that you stick to your policies and inform your debtors when they are late on payments.

The squeaky wheel gets the grease. Don't take it personally when a customer is unwilling or unable to pay, and don't give up.

Getting paid in a timely manner and avoiding collection problems are some of the benefits of a credit transaction. However, when you extend credit, you may have to deal with past due accounts, past due invoices or past due statements. A key strategy to ensure your credit accounts are settled is to implement policies that ensure timely and persistent follow-up on those customers whose account are past due. In some cases, you may need to report past due customers to the major credit bureaus, and even locate customers who are avoiding settling their bills using skip tracing tools.

Tips:
Start collection efforts immediately when accounts or invoices go past due. Even reputable companies and consumers run into financial difficulties, but it's important that you stick to your policies and inform your debtors when they are late on payments.

Send timely and appropriate past due notices to remind your customers that they are behind in their payment. It's important that any correspondence that you send conforms to state and federal laws.

Use telephone calls to remind your customers that they are behind in their payment. These calls can be frustrating: always use a professional and business-like tone and approach.

Follow up quickly if a debtor breaks a promise to make a payment. Timely follow-up is critical to maximize your chances of getting paid.

Immediately start tracing your customers when telephone numbers are reported disconnected or when your mail is returned as undeliverable.

Do not delay in reporting past due accounts to the credit bureaus.

If all your efforts do not result in the invoice being settled, consider referring your past due accounts to a professional who can take charge of pursuing collection efforts. This is the last and usually the most costly (if collected) resort, and a final step in the collection process.

Bill Collector in a Box™ centralizes all your past due customers and ensures that all appropriate bill collection steps are taken: from initial invoicing to reminder letters, credit bureau reporting, and even skip tracing measures. Bill Collector in a Box is the ultimate small business solution for all of the business owner's invoicing and collection needs. The easy-to-use bill collection software program provides business owners with the tools and know-how to solve their billing and collection problems quickly and effortlessly with a click of the mouse.

Click here to: Download Personal Guarantee Example

For more information, please call us directly - we will not keep you on hold and we do have fast answers to your questions. Dial 800-650-5118