Debt collection is crucial to the effective operation and smooth management of any business. Whereas consumer collection deals with pursuing past-due balances from individual customers, B2B collection agencies focus on pursuing debts from business clients. They work with representatives of the business to try and settle the outstanding balance on the credit line that was originally extended to the second company. Here are some ways you can improve this process for your business.

How to Improve B2B Debt Collection Practices

1. Record Conversations

If possible, record all conversations you have with the client in your attempts to collect on the debt. If recording call audio is not an option, take detailed notes of the conversation. Listen carefully to everything the client tells you, and write down all the information that’s pertinent to the case.

Keep a file for the client in which you store their past-due bills, conversation notes, and copies of all communications, including emails and snail-mail correspondence. Refer to these notes as needed in your attempts to obtain the debt. They’ll also be important if your business needs to take legal action against the client.

2. Maintain Professionalism

Collecting debt can be frustrating, but it's in your best interest to maintain professionalism throughout all communications with the client. Becoming aggressive, angry, or threatening will only alienate the client further, and it will reflect badly on your business.

Listen to their reasoning, respond with compassion and skill, and gently remind them that you will be following up on the debt until the matter is satisfactorily settled.

3. Stay on Top of Collection Action

Monitor the payment status of all invoiced clients. When a client is more than three or four days late, follow up with them and respectfully ask when you can expect payment.

It's often easier to collect on a debt when it’s still fresh in the minds of all involved. Promptly sending payment reminders will also ensure clients know you’re monitoring their account and are serious about receiving a timely remittance.

If the above methods fail in your attempts to work with a client, it's time to bring in a professional. Joseph, Mann & Creed is a debt collection and accounts receivable management service that’s been working with clients around the world since 2001. Based in Twinsburg, OH, they’re committed to the success of your business and the stress-free oversight of its accounts receivable. Call (216) 831-5626 or visit them online to schedule a consultation today.