In-House Collection Tips

These methods are proven to reduce your aging and maintain your customer’s good standing.  The following steps are recommended:

• Clearly establish your terms with your customer at the time credit is extended.
• On large projects, make sure the customer is current 30 days before the job is completed.
• Prepare the customer’s final bill, and provide all back up documentation at that time to identify and eliminate potential disputes. Ensure that Credit Applications, and Conditions of Service are completed and signed. (This helps with collection of accounts sent to us, and allows us to collect the interest and legal late charge.)
• If the invoices are not paid within 30 days, send a reminder notice to the customer.
• At 45 days and the invoices remains unpaid, contact the customer for immediate payment.  If, at this time, they request back up documentation, strongly remind them that you have already provided the information and request payment in full.
• If the payment is not received within 10 days (now the account is 55 days old), send a past due notice to the customer.
• If the payment is not received within 10 days (now the age of the account is 65 days) of the past due notice, contact the customer and demand payment in full to be sent via overnight carrier.
• If the payment is not received within 5 days, contact your representative so that we can send a 10 day demand on Clovis & Roché letterhead for payment in full. Our demand states the account will be placed for collections and they will be responsible for all collection costs and interest at that time.
• If the payment is not received within the 10-day demand period, the account will be immediately placed for collections with all costs added.

Follow these steps and your accounts will be collected sooner. Your customers will be conditioned to do business on your terms, and we will be more effective in recovering your money and collection fees in the event that the account is placed for collections.

Click here to learn about spotting Red Flags in account receivable.