How to handle customers who don’t pay

 

In any business, there will be customers who struggle in paying off their invoices on time. There are times that the business has to go through a collection agency and pay fees to collect their own money. In order to avoid having an enormous customer’s list to give to the collection agency, and waste your time and money, J&B – Houston Commercial Cleaning Service – suggests following the list below which is the best way to approach past-due accounts.

  • Avoid getting angry or taking it personal. The main mistake is threading and thinking the past due customer as an enemy. If a good customer has a late payment this might be due to a short-term financial crisis in his/her company.
  • Work with the customer. Understand his/her situation and offer solutions to pay the invoice, such as payment plan or return the item acquired. If the customer is one with whom you hope to do business again, he/she will never forget about your customer service and solutions to keep a good business relationship.
  • Have often communication. Always follow up with the customer in regards payment or solution. Keep record of every communication provided, whether is via phone call, email, fax, or mailed letter. The communication method should always have time and name of customer. Keep follow-up until payment has been completed.
  • Remember about past-due accounts. Avoid leaving those accounts to have a large aging period time, mainly if there hasn’t been any notification that the invoice is past due. Send a notification as soon as the invoice has been past due, therefore the customer will not ignore your payment.

Lastly, if all efforts have not been successful, then send the account to collections. Use a collection service as a last resort, since most of the agencies take from 15% – 40% of whatever amount they collect.

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About J&B Professional Cleaning Service
Specialing in all types of Janitorial, Construction and Remodeling Clean-Ups

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