Debt collection becomes more complicated when you have to deal with a big client who is falling behind on their account with you. Refusing to conduct future business dealings with them may be something to reserve as a last resort. These tips are intended to help you collect on the debt—without destroying important business relationships.

4 Debt Collection Tips for Getting Big Clients to Pay Up

1. Get Past the Accounting Team

Your client’s own accounting team may be more concerned with their own bottom line and that can mean putting off paying vendors for as long as possible. Your debt collection efforts may yield better results if you contact the purchasing team instead. These are the individuals who chose you as a vendor and since they will want to keep relying on your services, they will be more motivated to ensure the account is kept in good standing.

2. Look for New Clients

If your business does rely primarily on one big client, this is just a disaster waiting to happen. If that client decides to pay late to help them manage their books better, your small business can be left in a bind. This is why it’s important to continue to grow your total base of clients. A single client’s business shouldn’t comprise more than 8 to 10% of your total gross income. This will help ensure one business’s unpaid account won’t cripple your own company.

3. Stop Accepting New Business 

At some point, you will have to put your foot down, and this cannot be a bluff. You must set a limit as to how late you’ll allow payments and stop doing business with that client at that point. If two weeks past the due date is your limit, stick to it. You can explain to your client that they may submit new orders after they have paid up on their account, but, in the meantime, you cannot honor new orders.

4. Seek Out Third-Party Help

You may have to refer the matter to a third-party collection agency. Even larger companies can experience extreme hardships, but their business problems shouldn’t drag your company down with them. Getting paid for the services you performed via a third party will allow you to cover your own debts and grow your business. Ultimately, you won’t have to rely on that big client. Often, this step can help you avoid experiencing the loss or having to pursue the debt in court.

When it does come time to refer a past due account to an agency that specializes in debt collection, you’ll want to rely on a company with a good track record. Joseph, Mann & Creed is a certified collection agency located in Twinsburg, OH. You can view their credentials by visiting their LinkedIn page, or you can read previous client testimonials on their website. To schedule a consultation, call (216) 831-5626.