Everyone goes into business trying to make good profits and establishing great relationship with their clients and associates. But how many learn how to do collections from the go?
Either you are a professional writer, digital marketer or even media personnel, when your business involves providing services to other businesses, there will be need at some points to learn debt collection techniques.
And owning to the fact that sudden changes are likely to occur economically to those businesses you deal with or with the economy generally, it’s crucial to develop a well-tailored collections strategy.
This would ensure that there is no damage to the relationships you have establish over time with your clients.
For instance, business relationship could become complex if warnings are sent to collections without notice initially.
At the same time, it is very important you still ensure that you do not run into debt simply because businesses you are expecting money from are sluggish or reluctant to remit to you.
It’s good to know that there are crystal clear differences between the strategies involved in Business-to-Client collections and Business-to-Business collections.
Client relationship, billing and decision making are very important steps that must be highly considered when running B2B collections. These processes are way more sensitive in business-to-business than they are in business-to-customers.
When looking at ensuring you have a consistent relationship with your B2B client, you’re better off working towards establishing strong partnership with them in such a way that they are nurtured to always find their way back to you on a consistent basis.
This is especially important if your business deals with few clients.
While the process of billing is relatively shorter and straight-to-the-point in Business-to-Customer collections, the process is much more complex in Business-to-Business collections.
While you can complete a deal with your client at a particular time, billing in B2B collections usually involve having agreements with your customers to allow them pay for whatever they have ordered from your business over an extended period of time.
Decision making is another important part of B2B collections. Deals involving business-to-customers are usually completed between two individual – with one being the business owner and the other being the client.
The process of making decision is pretty much simpler and easier in B2C collections.
However, decision making in B2B often takes longer because time is often needed for research, evaluations and negotiations between the two parties.
Considering all the vital processes involved in B2B collections, your business needs highly effective strategies that would ensure that you are able to recover all the profit which are owned to your business.
Failure to do this would only mean that your business would eventually be at the verge of running into debts.
We believe you do not want to run into debts in your business. Therefore In this post, we shall be highlighting four important steps that would help you create an effective B2B collection strategies.
Develop an operative payment-tracking system:
Ensuring that your money gets back into your business begins with you developing an effective payment-tracking system.
You don’t want to take any risks by assuming that your clients would pay you exactly the amount agree in installments.
Often time, there is need for businesses to track the payment system in such a way that no single detail would be left out in the course of business clients making payment to the business.
Fortunately, we are in the era of sophisticated technology.
Making use of a payment-tracking system is now very much of a reality as software specifically designed for this purpose are already in existence and use.
Make prompt notifications prior to time of collections:
While you are doing all you can to track payments in order to avoid missing out on payments from your business clients, it is also vital send prompt notifications at intervals just to remind them about the existing agreements between your businesses.
This would help to eliminate any forms of doubts or complaints about set deadlines for payments.
Prompt notifications can be scheduled in such way that they are sent over the period of time when such businesses are meant to remit money into your business’s account.
Set strict penalty for missed payments:
There are businesses who don’t mind missing payment deadlines despite the barrage of notifications you send to them. They simply feel comfortable paying you at their own convenience.
This is particularly common when your business is just starting out and yet to acquire business clients who are very committed to the business relationship you’re trying to establish with them.
How then do you still get them to make the necessary payments to your business?
This can be achieved by getting them to sign an agreement which clearly states the heavy penalties involved when they refuse to make the necessary payments. into your business’ account as at when due.
You may want to get a legal practitioner to help you look into the agreement and back them up with every important details legally.
Ensure that payment terms are not reviewed
Due to one reason or the other, your business clients may want to have you sat down with them to review the payment terms that have been set at the beginning of your business-to-business collections with them.
You could turn to effective debt collection scripts in order to ascertain your individual positions on payment agreements.
This is actually not advisable. It is very much possible that your business would be at the receiving end of some harsh outcome if you had to review the payment terms that has already been documented.
In situations where the economy is not favorable for all and sundry, it’s advisable that you do not extend the payment terms beyond 30 days. This is helpful in order to ensure that your business remains in shape despite adverse economic conditions.
There are reputable number of b2b agencies that can assist you in receiving all outstanding and impeding payments which are important for the financial growth and development for your business.
In this blog post, hopefully, you have learnt how to do collections in b2b much more easily.
Do you have collection call templates for receiving you payments?
Are there other collections tips not mentioned in this post?
Kindly share your thoughts in the comments.