While you are very informed about the sector in which you operate, how informed are you about your clients’ industry? What’s happening in the business world in which they operate? When it comes to ARM collection, being aware of your debtors’ business sphere is surprisingly important. It can also have a major impact on your ability to collect debts.
The best cure is prevention in terms of debt collection issues. If a client is having difficulty, it’s possible to work closely with him or her to obtain a payment. Whether that means eliciting a payment more rapidly or the creation of a payment plan, spotting the signs early is key. For most businesses, however, those warning signs begin further away from their premises.
A Case In Point
Take a supplier of linen whose major client is a big bar chain that specializes in making retro cocktails. The company may not think that the U.S. whiskey tariffs are going to cause any problems for its business. In fact, it probably isn’t anything those in the company are thinking about. However, let’s look a little further down the supply chain. Remember that the linen supplier’s top client is a bar chain. Those whiskey tariffs are going to affect its suppliers. Suddenly, the impact on the linen supply business becomes clear. Will its client be able to pay for the goods?
There isn’t anything the linen supply company can do to affect international trade. However, it can be aware that there could be a problem with the whiskey sector. This could help the company to keep a close eye on its client’s invoices that have gone past due.
Keeping On Top Of Business
Keeping on top of all the latest happenings across your clients’ industries isn’t easy. However, simply reading publications, such as The Wall Street Journal, can give you a general overview. Google Alerts are a useful tool. Apps, such as Feedly or Owler, allow you to make your own personal newsfeed.
So, what happens if you notice a piece of news that could negatively affect a client? Obviously, you don’t necessarily have to change the payment terms or cut the client off completely. But, you might think about checking in with your client or even diversifying the client base you rely on.
If you’re informed about the world of business, you’ll have stronger client relationships. You’ll also receive timely payments.
A Streamlined ARM Collections System
While staying abreast of world industry news is important, there is more to a streamlined ARM collections system than that. An electronic accounts receivables management system is the ideal solution. By offering a convenient online payment system, it’s possible to make it easier for clients to pay what they owe. Much simpler than writing and mailing checks, a client can access an online ARM collections system 24/7 from anywhere. The client can make a payment at a time and via any method he or she wants. Meanwhile, you can receive money in a timely manner. The benefits are twofold and are clear for both parties. By pairing a user-friendly ARM collections system with a wider industry knowledge, it’s possible to maximize revenue.
BillingTree offers a cutting-edge ARM collections system solution for companies. Eliminating many of the challenges that surround collecting money owed, BillingTree’s solutions are convenient and innovative. Not only are they simple to implement, but they are also highly secure and compliant for complete peace of mind. There’s no more efficient way to elicit payments from clients even in the most challenging of circumstances.