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The Best Way to Prevent Overdue Account

Categories: EconomicsMoney

Most businesses have to deal with an overdue or unpaid account at some point or another. The best way to avoid collection hassles is to take preventive measures up front to ensure that accounts don’t become delinquent. Below are some steps you can take to help improve your receivables turnaround. Don’t grant credit. It’s not always possible or practical, but some companies can be run without offering credit. Require cash or certified checks/money orders. Ship products C.

O.D. (cash on delivery), especially to new customers who don’t have a payment history with you. Always be wary of work from home, secret shopper positions or any job with a generic title, such as admin assistant or customer service representative. These often don’t require special training or licensing, so they appeal to a wide range of applicants. Accept major credit cards. Make it convenient for customers to do business with you by accepting charge and credit cards.

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While you will pay out a small percentage of each transaction for processing, you also will get paid within days. If you follow the regulations, you won’t be liable for fraudulent charges, although the customer will have the option to withhold payment if there is a dispute about a bill.

Talk about fattening profits and making your business more efficient. For swindlers and hustlers, there’s nothing like the Web. Lies can be spread to millions of trusting people at warp speed, and the arm of the law isn’t long enough to halt more than a few.

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Require deposits. Both service and product businesses can ask for advance payments. Product firms can ask for 50 percent payment up front and the balance on delivery, or request a deposit amount based on standards for their industry. Service businesses might want to ask for 20 to 50 percent up front, depending on the project, with remaining payments due when certain milestones are met. I knew something was wrong this. If a job looks suspicious, search for it in Google. Offer terms. Terms outline how you expect to get paid, and what interest or penalties you charge for late payment. State these clearly on your contracts and invoices because you cannot request that these terms be met if customers do not know about them beforehand. It is common to ask for one to one and a half percent per month for late payments.

While this won’t net you much money, it indicates that you are serious about timely payment. You also might want to offer a discount of one percent or more for early payment as a way of speeding cash flow Get a signed agreement. Never extend credit without getting something in writing. If there’s ever a collection problem, having a signed agreement makes your case much stronger. Use a purchase order or contract that details how much a client will owe and when it will be due. Take a moment to review payment deadlines with clients and express that you expect to be paid on time. Point out the terms for late payment. Always record changes or compromises in writing. Check credit. Collect the information you’ll need to run a credit check on a credit application or “new customer form.” For consumers, this data includes address and phone numbers, whether homes are owned or rented, how long at last address, and bank account and credit/charge card account numbers.

For businesses, you can ask for business name/dba, federal tax I.D. number, names of owners/principals, address, phone number, DUNS number, and at least three credit references. You can get credit reports from major credit reporting agencies such as Experian, CBI/Equifax, TransUnion, and Dun & Bradstreet. Be very cautious of any job that asks you to share personal information or hand over money. Scammers will often use the guise of running a credit check, setting up direct deposit or paying for training. Create a billing/overdue notification system. You can’t collect if you don’t know how much is owed to you and when it is due. Set up a system that alerts you to overdue accounts – most accounting software programs do this automatically. Once you have a system, make sure someone in your company is responsible for keeping it up to date. Conclusion. The topic was too easy and used too much. It was just too good to be true.

I got interviewed by Mrs. Teresa White over Yahoo messenger. What sent off an alarm was in the middle of asking questions about previous experience came the question; what bank are you with? I thought that was strange but because there is an offer of $22.55/hr. on the table I decided to go along. Then at the end they asked for my home address, full name, and phone numbers. I assume that is so they can call in and see how much money I have in my account. Then when after having me on hold for like 10 minutes while checking with her superior to go over the interview came the job offer but in an indirect way. She didn’t actually say that I was hired but alluded to it.

Then came the part about the check which immediately sent off another alarm. Then I was able to piece it together. Bank + Personal Info + Check = SCAM! The check is only so they can get your account number which most likely will bounce. Plus who in the hell does interviews over IM these days and the interview wasn’t even challenging. Maybe my years working for the justice system helped. Check out the business’ website to make sure the opening is posted there. If you are still skeptical, call the business to check on the position. Don’t rely on websites or phone numbers provided in the advertisement; find the “employer” on your own to make sure it’s the real deal. I figure it out a little faster because of the field I am in. And I am working on my doctoral dissertation where this will fit into it nicely and they got my resume from odesk.

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The Best Way to Prevent Overdue Account. (2016, Jun 16). Retrieved from

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