7 Innovative Ways Top Businesses Are Collecting Overdue Payments

Companies know that collecting customer and client payments is essential for survival. If they don’t get it right, they could be seriously out of pocket, and that’s not something that anyone wants. 

Unfortunately, many customers simply don’t want to pay. They think they can get away with skipping payments and seeing what happens. 

Naturally, you want to clarify that you don’t find this acceptable. But how can you ensure that they always pay up? 

That’s the million-dollar question. 

Fortunately, these days, plenty of big companies are nailing these customer payment and chase processes. They’re innovating to ensure payments are made on time and that clients don’t skip their obligations. 

Clear Communication

The first strategy is to use clear communication. Companies aren’t leaving anyone guessing about things like payment amounts and timetables. 

This level of communication isn’t pushy. It just attempts to let customers know where they stand on invoices and contracts. 

In a quick sentence, “It’s polite but firm.”

When communication is clear, it reduces mix-ups that can be used as excuses for late payments. Customers should know what they owe from the outset. 

Furthermore, it reduces the risk of inadvertent late payments (another common issue), which again helps to keep accounts receivable healthy. 

Skip Tracing

Another innovation companies are using to collect overdue payments is specialist tracking services. These can monitor customers and learn more about them, discovering where they are, where they’ve gone, and what they owe. 

Find the best skip tracing service you can and arrange to work with them. Then, use their services to learn more about where customers are and what they do. This way, you can identify patterns and potentially intercept them, if necessary, getting them to provide you with the money they owe. 

Skip tracing isn’t necessarily invasive, but it gives you more control. You have more information, so you can spot patterns and perhaps even choose ahead of time whether you want to work with someone. 

Exceptional Customer Service

Offering reasonable customer service is also a common policy. Businesses that prioritize quick responses and friendly support are more likely to encourage client interactions. 

For example, suppose a late-paying client calls the brand’s team with concerns. The better the reps are at dealing with the payment issue, the more likely the client will start making payments. For example, they might agree to start some late payments or create a plan to help with them, spreading them out over time. 

Incentives For Early Payments

Another tactic many of the top brands use involves incentives. Giving clients a discount or bonus for paying early is a friendly way to reduce costs and encourage them to send money immediately. 

This tactic is particularly effective in the professional services world, where many businesses are B2B. This approach forces the opposing party’s hand by offering them something they didn’t expect but that benefits both parties. 

Data-Driven Insights

Companies also use data-driven insights to help them collect overdue payments. These firms use software to spot clients likely to make late payments with early reminders or incentives.

Often, the patterns for high-risk customers are in the data. Most brands can see when payments will likely go wrong ahead of time, letting them categorize their clients into risk profiles. Then, they can use these to allocate resources to ensure timely payments from these individuals or entities. 

Technology

Top businesses are also using technology to make payments more effortless. The idea here is to make it easy for customers to pay so they get on and do it. 

The range of payment technologies available today exceeds anything that came before. Online platforms, mobile apps, and even text-to-pay are all available these days. 

Furthermore, many companies are now implementing one-click payments. These allow clients to pay with a single touch without processing invoices or entering credit card details. It all happens automatically. 

Automation

Finally, automation is also changing debt collection. Businesses are using advanced tools to send customers automated reminders that they owe them money, cutting down on internal paperwork and admin. 

These systems are helpful because they can flag blatant late payments. They can also indicate patterns and direct staff resources to chase up the most severely late payments in the accounts, such as those outstanding for more than 90 days. 

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