Prevent Past Due Accounts

Anyone that’s in business these days knows all too well how big a problem past due accounts have become.  There has been a monumental increase in delinquent payments since 2008 and most businesses are really not seeing much improvement.

It’s really a tough spot for both business and consumer.  After all, so many of the consumers that are delinquent with payments don’t want to be delinquent – they just don’t have a choice right now.  But the businesses can’t survive if they can’t collect on their accounts receivable – their choice is collect or fold.  Add to that little scenario the fact that it can be incredibly time intensive to try and get those accounts receivable handled… for most small businesses, there just aren’t enough hours in the day to run the business and try to play collection agent.

For many businesses, the solution to past due accounts is outsourcing.  Now I don’t mean collection agencies.  Those guys can be necessary for some, but they should really be a last resort.  The type of outsourcing that I mean is the kind that acts as your accounts receivable department.  They can work with your clients as a third party or as part of your business and help facilitate – and in some cases, automate -  the payment process.  Sound too good to be true?  It’s the real deal!

Are you thinking something like this?

- “It’s  probably expensive”

- “That kind of thing won’t work for my business”

- “My customers won’t like this kind of system”

The beautiful thing about A/R outsourcing (again, NOT collections) is that 1) it is not expensive, 2) it can work for any business or medical/healthcare practice that invoices their customers or that carries high-balance accounts, and 3) most customers will actually appreciate the fact that you are taking a thoughtful approach to their situation and not throwing them to the collection agency wolves.

At a time when it is tougher than ever for small businesses to survive, don’t overlook potential solutions just because you think you know what the outcome will be.  Sometimes the simplest approach can be the best.  Imagine a solution that cost you less than a utility bill but could reduce your delinquent accounts to less than 10%.  Wouldn’t that be worth considering?  If it would, visit our website at www.bettercashflownow.com, give us a call or send us an email.  That’s the solution that we offer every day.