bankingciooutlook

Key Credit and Debt Collection Strategies to Implement

Banking CIO Outlook | Friday, April 30, 2021

Some organizations generate invoices using a Word or Excel template. This method, though certain to ensure accuracy, entails a lot of manual labor, which can introduce unnecessary human error into their invoicing practices. Consider switching to invoicing technology to reduce mistakes and save time.

Fremont, CA: There is always the possibility that such clients will not pay their bills on time in B2B transactions. Perhaps this is due to clients having a large number of invoices to pay within a certain time frame and forgetting about one's invoice. Most times, it's because a customer lacks the funds they expected to get to pay for one's services. The good news is that the debt collection tactics mentioned below will help one reduce the number of unpaid invoices.

Key strategies to streamline debt collection process:

Reviewing Invoices 

Non-paying clients could not have paid because the invoices do not clearly state that payment is due within a certain number of days. Organizations will reduce such errors on their end by updating their invoicing policies on a regular basis. This method entails looking at how organizations can generate invoices and ensuring that each of the following is present:

  • An invoice date
  • A unique invoice number or another identifier
  • Contact information (name, address, phone number, and email address) for both the creditor and debtor
  • Payment terms and deadlines, including acceptable payment methods
  • An itemized list of services with a unit price, quantity, and total price for each line item
  • A clear total invoice value
  • Reviewing Invoicing Policy

Organizations should examine not only their invoices but also their invoice-sending policy. If they bill their clients monthly but consistently run out of cash, consider switching to bi-monthly invoicing. Alternatively, if organizations usually send invoices on the last business day of the month, consider sending them on the first business day of the next month. Clients who conduct end-of-month payment runs would be less likely to skip their invoices this way.

Switching to Invoicing Technology

Some organizations generate invoices using a Word or Excel template. This method, though certain to ensure accuracy, entails a lot of manual labor, which can introduce unnecessary human error into their invoicing practices. Consider switching to invoicing technology to reduce mistakes and save time.

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