Optio Solutions, LLC

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All businesses experience late, slow pay or no pay accounts from time to time. Here are some tips to lessen the impact and improve your cash flow. Click here for tips on how to protect yourself from Identity Theft Preliminary Credit Check: Before granting credit to a customer, whether for major purchases or repeat business, obtain credit references and a credit report. Proper Billing: Submit invoices as soon as money is due. For long-term projects send interim billings. Invoices should include business name, address, phone number, line item descriptions and costs, total amount due and payment due date. Payment Incentives: To receive faster payment, offer customers a 1- to 3-percent discount for early payment; payment with 7 to 15 days is standard for a discount. Encourage credit card payment as well. Early Intervention: Recovery efforts initiated early in the revenue cycle have the highest rate of return. Beyond 90 days, recovery rates decline significantly. Implement a recovery strategy that mitigates collection issues during the early stages. First Stage: If payment is not received by the invoice due date, send a reminder the next day. Don’t hesitate to call the customer. A phone call early on is 10 times more likely to get a payment response than a conventional written or e-mail message. A Unified Approach: To maximize debt recovery, contract with an accounts receivable management company that offers both timed collection letters and phone calls to manage early stage collection efforts. Reputation Matters: When contracting with an outside receivables management firm, work only with licensed companies affiliated with regulatory institutions such as the Association of Credit and Collection Professionals (ACA) International.

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