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Negotiations - Not Confrontation
InCase Receivable Management Inc. Invoice911.ca The First Line of Defense to Your Bottom Line ___________________________________________________________________________
Box 34 Lower Concourse, 2016 Sherwood Drive, Sherwood Park AB. T8A 3X3 Phone: (780)-416-4840 Toll Free: 1-(888)-416-4840 Fax: 1-(866)717-1902 Email: info@invoice911.ca Apr/May 2009 Newsletter
A/R Strategy Checklist Following is a list of items that once included in your business plan will greatly reduce the number of past due customers and most importantly reduce the volume of write-offs to bad debt. When you are negotiating with or quoting a customer: ü Clearly advise the customer when payment is required.ü Gain their agreement as to when payment is due.When you take the order: ü Acknowledge the order in writing, emphasizing payment terms.If the customer is new: ü Obtain a credit application form.ü Check payment reliability and solvency with other trade creditors.
ü Send a New Account Welcome letter stressing account payment terms.When the goods are delivered or the services supplied: ü Obtain a signed proof of delivery or work completion note.ü Ensure your invoice includes the customer purchase order number or other reference.
ü Invoice within 24 hours of delivery/supply, stressing the due date.
ü Send a monthly statement of account. When collecting unpaid accounts: ü Have a daily display of past due accounts.ü Apply specific resources to follow-up on delinquent accounts.
ü Visit or telephone all large accounts.
ü Develop an effective letter campaign for small balance accounts.ü Utilize fax and email as a communication method when customers are avoiding you.
ü Establish a clear policy to stop supplying slow paying customers.
ü Establish a timetable for collecting with defined steps at stated intervals, including the referral to a third-party for non-paying customers. If you are a director or owner: ü Monitor daily collections and correct bad trends promptly.ü Devote skilled time, including your own, to collections.
From Author Alan Lakein "How to Get Control of Your Time and Your Life" (1973):“In all planning you make a list and you set priorities.” …Some food for thought. Make a list.
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