There are two easy things you can do to protect your business today:
- Make sure every account is up to date on payments, start working on them now if you haven’t been.
- Make sure you have a signed credit application with up to date contact information on file for every customer.
The first item could take you some time depending on how many past due accounts you have. If you don’t have that many you will get the best results by calling them, and call the customers that owe you the most money first then work your way down the list.
If you have to many to call and it would take you days, pick out the highest dollar amounts accounts and the oldest past due balances and just call those. Send collection letters to the rest, and include a self addressed envelope for their payment.
If your business extends credit, you might want to take a look at what is going on around you.
Mills are closing, disasters are everywhere, a recession is here, do you have customers that owe you money?
Are they in a position to pay you?
Will they be in a position to pay you in 6 months?
What will you do if they can’t pay you?
How will you pay your bills?
Now is a very good time to make sure everyone’s credit applications are up to date and signed, make sure all accounts are current and really work on getting anyone who is past due, paid up. It is easier to keep a handle on your receivables when you begin with them under control. Once they get out of hand it is harder to keep them from becoming past due.
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