name two methods the business can apply to improve the collection of outstanding amount from debtors
Answers
Explanation:
Invoice Quickly. ...
Break Up Your Invoices. ...
Send Clear, Easy-to-Understand Invoices. ...
Simplify the Payment Process. ...
Establish Good Relationships with Your Clients. ...
Send Payment Reminders. ...
Follow up with Delinquent Accounts. ...
My business
Debt collection methods and techniques
Promptly, professionally, and decisively commencing and completing a debt collection process is a must for every business manager/owner who aspires to keep their business organisation healthy and successful.
Customer debt and debt collection are realities for every modern business—regardless of size or nature. As a business owner/manager, preparing for debt collection issues and effectively responding to delinquent customer-debtors is a must to ensure continued business growth and success.Besides observing the debt collection guidelines promulgated by the Australian Competition and Consumer Commission (ACCC) and the Australian Securities and Investments Commission (ASIC), consider the following steps, in order, in promptly attending to customer debt and effectively commencing—and completing—the debt collection process:
Friendly payment reminder
Overdue payment reminder
Final notice
Direct contact
Formal letter of demand
Friendly payment reminder
When payment is overdue, communicate with your customer via phone, email, or even the traditional mail with a courtesy reminder. There might be several reasons why the customer has not promptly attended to his debt repayment responsibilities—he or she might have forgotten the due date, paid or posted the amount into the wrong bank or the wrong payment channel, or some other minor issues. Your reminder might just be what your customer needs to pay off his or her debt.To facilitate the convenience and speed of your customer doing so, include in your courtesy reminder your complete bank details and contact information.
Overdue
payment reminder
If the debt still remains unsettled and your customer has already missed the agreed upon due date and there is still no communication from him or her, then make a call or send another email. Remind them of the money they owed and request for them to repay it as soon as they can.
Final notice
Call or email your customer again when they still have not paid in accordance with agreed upon terms of payment, and when they have already missed the extended payment dates. Your call or email should contain information on their outstanding debt and your request for payment.