Any business relies on cash flow to both make a profit and keep the operation running smoothly. Unfortunately, all businesses will, at some point or another, encounter issues with collecting money from customers, and this can have a significant impact on the cash that's coming in—or not coming in. Here are a few tips for increasing your business's cash flow and improving debt collection practices.

How to Grow a Business's Cash Flow & Improve Debt Collection

1. Focus on Customer Service

When you look at the operating practices of any successful business, one factor is usually apparent—customer service is the main priority. Customers who are treated respectfully are happy customers, and happy customers are more likely to pay their bills in a timely manner. Issues with a product or service, a request for a refund or exchange, or significant pushback from the business can derail the payment process until the problem is straightened out. To guarantee a steady cash flow, focus on your customers and their satisfaction. When there's an issue, address it promptly. Be civil and respectful in all dealings with customers. Implement company-wide policies on how to handle complaints, refunds, and exchanges.

2. Follow Up Frequently

Once a customer has missed a payment, follow up with them immediately. Invoices typically include a pay-by deadline, so don't hound them before this date. After not receiving payment, contact the customer and check-in. There's no need to be harsh or pushy, but just make them aware that you're awaiting payment. It's entirely possible they simply forgot to pay. Even if they didn't and are, for whatever reason, withholding payment, they will likely be more apt to send a check when they know you're keeping tabs on their account status.

3. Hire a Professional Debt Collection Agency

Despite your best customer service practices and most dedicated follow-ups on outstanding balances, sometimes customers don't pay. For this reason, it's crucial to have a professional collection agency on your side. They handle the legwork of tracking the customer down, demanding payment, and mediating, negotiating, and problem-solving as necessary. Not only will this help ensure payment, but it also frees up your own schedule to concentrate more on your business, its cash flow, and its continued success.

By following the above tips, you are taking proactive steps to increase cash flow and improve debt collection in your place of business. Joseph, Mann & Creed is a commercial collection agency that has been serving businesses around Summit County, OH, since 2001. They pride themselves on getting results and maintaining the reputations of the clients they work with. To obtain a quote, call (216) 831-5626 or visit their website today. Learn more about the experts on LinkedIn.