Unpaid invoices and late payments are still too often a taboo today. Companies that ignore their liquidity problems and up in a vicious circle in which they also draw other companies into it. If we want to stop that snowball reaction and get our economy back on track after the corona crisis, we need to make outstanding invoices open for discussion.
Sooner or later, many entrepreneurs run into payment problems. Especially in times of crisis. Suddenly, too little money comes in to pay all outstanding invoices and you fail to meet some payment terms. There is still too often a taboo on outstanding invoices and late payments. Entrepreneurs deny their problems and keep up appearances.
But how do you make unpaid invoices open for discussion, and how do you avoid that a temporary problem becomes a structural problem?
Create good will in good times
The first step is very simple, and you take it (long) before run into liquidity problems. Make sure you always pay your invoices on time. And pay attention to invoices that are not paid on time. When you customers always pay on time and suddenly there are problems, it is easier to look for a solution. If your customer pays 99 invoices on time, you will sooner show your goodwill when the hundredth invoice takes a while. And that of course also applies in the opposite direction. When you are a reliable customer in good times, you will be able to count on a lot more understanding when things aren’t going as well.
Ring the alarm in time
If you run into cash flow problems, signal this in time to the companies where you still have unpaid invoices. That is easier said than done, because no entrepreneur likes to admit that things are going a as well. But mutual understanding will be great. Many entrepreneurs have already struggled with liquidity problems themselves. Customers who do not pay invoices on time, an economic crisis, a lockdown, etc. Every entrepreneur know that external circumstances can have a major impact.
So do not wait until the payment term is very close, or even has passed, to talk with your customers. Build a customer relationship that is based on mutual trust, so that you customers sound the alarm on time instead of waiting for the due date. Or even longer. Your customers should know that they can avoid an escalation if they dare to bring up their payment problems.
Constructive solution for both parties
If your customer notices in time that it is difficult to pay an outstanding invoice, you can look for a solution together. For example, you can allow to pay off the invoice in monthly installments. Or your cork with a deferment of payment. It is to everyone’s advantage to look for a constructive solution. If you have to use resources to collect the outstanding amount, there are often costs involved. And then at the end of the journey, a customer relationship will probably end. A customer relationship that could have generated a lot of money once the economy picks up again.
With Go Solid as a collection partner you can focus on a sustainable improvement of your cash flow free of charge. Thanks to the procedure for the collection of undisputed debts, you will receive the full invoice amount without paying any deposit or advance. In addition, a lot of high legal costs for your customer are saved thanks to this administrative procedure. Our correct, transparent and professional communication to both you and your customer ensures that a forced collection does not have to damage your customer relationship. Would you like to know mere about our efficient approach? Contact us today.