Our number one tip for getting paid on time

Turn a debt collection call into a customer service call

Our number one tip for ensuring timely payments is to transform traditional debt collection calls into proactive customer service interactions. This strategy not only improves cash flow but also strengthens client relationships.

The 4-Day Rule

Implement a system where your accounts receivable team contacts clients approximately four days before the payment due date. The key is to frame this call as a friendly check-in rather than a demand for payment.

For example:

“Hello, I’m just checking in regarding the payment due next Wednesday. Is everything on track on your end?”

This approach accomplishes several crucial objectives:

1. It serves as a gentle reminder without applying pressure.
2. It demonstrates your organisation’s attentiveness and professionalism.
3. It provides an opportunity to address any potential issues early.

Benefits of early communication

By initiating contact before the due date, you can:

1. Confirm payments that are on schedule, allowing you to more accurately forecast cash flow.
2. Identify and address potential delays or issues proactively.
3. Open a dialogue to understand the client’s situation if payment challenges arise.

Turning challenges into opportunities

If a client indicates they cannot pay on time, use this as an opportunity to:

1. Understand the root cause (for example, delivery issues or their own cash flow problems).
2. Offer support or flexible solutions where appropriate.
3. Strengthen the client relationship through empathy and problem-solving.

When payments are made on time, express your gratitude and, where appropriate, ask about their satisfaction with your products or services. This further enhances the overall customer experience.

Why this works

By reframing collections as customer service, you create a positive environment where your team is more likely to make these crucial calls consistently. This approach not only improves your cash flow but also fosters stronger, more transparent client relationships, ultimately contributing to your business’s long-term success.