How to Collect Past-Due Payments

How to Collect Past-Due Payments Without Fail

Written By:

Petite2Queen

There’s one aspect of sales many professionals struggle with: collecting your money. Nearly every company has a clear order-to-cash (OTC) cycle in place, and when a client misses an invoice, that triggers the need to collect those past-due payments. This can be hard for many people. How do you handle clients who deflect and delay payment? What do you do if a client becomes angry or refuses to work with you?

First, take a step back and breathe. This is a normal part of every business, and you can collect your dues while maintaining a good business relationship.

Sales expert Lynn is here to help. Find out how to collect past-due payments in our webinar below:

Money matters are no joke. Your company’s success depends upon receiving timely payments. When a client is late in paying, it’s imperative that you work to resolve the issue swiftly.

Prevention is often the best medicine, so be sure to have a good order-to-cash (OTC) process in place. How does this make it easier for your customers? How will it streamline your own internal processes? Lynn explains its value and how it will help in dealing with issues that arise.

When working with a client, aim to understand their unique payment traits. The better you understand a client, the better you’ll be able to work with them. Communication is also key, both internally and externally. Lynn walks us through effective communication in the webinar above.

Webinar - Past-Due Payments

So, once you have all of that in place… how do you reach out to clients about their late payments? Lynn outlines when and how to make contact, what information to have ready, and what questions to ask. Be prepared to address any deflections or objections they may have.

Throughout all communications, though, be sure to maintain professionalism. Manage a client’s flight or fight responses, and work to keep the relationship intact. The payment issue may be a bump in the road, but if managed well, you can still retain the client and connection.

Despite all of your best efforts, some issues may not be resolvable. What do you do if, after multiple points of contact, you’re unable to get payment? What legal steps should you take? Lynn explains what to do in this worst-case scenario.

Financial spats can be difficult, but with the right preparation, they can almost always be resolved while keeping the client relationship intact.

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