As a small business owner, you probably spend a whole lot of time organizing your finances so that you can meet loan payments on time. But when is the last time that you took a good look at what others owe to you? There are a whole host of situations where you may have found yourself lending in some way or another. It is crucial that you focus on recovering loans and ensuring that you aren’t simply giving money away.
While the loan amounts may be small, if left unconsidered, they will add up and have a profoundly negative effect on your business. So it’s time to take a look at your accounts, finances, and general personal situation to see whether there are unresolved debts that you need to chase up.
Outsourcing Your Billing
Sometimes we don’t have time to chase up individual debts ourselves. After all, we already have a lot on our plate and we need to focus our attention on helping our business move forward. If this sounds like you, don’t just ignore what’s owed to you. You can outsource your billing and the process of claiming back the money that you are owed. Remember that this goes for services as well as goods.
While you may be able to reclaim goods if individuals do not keep up with agreed payments, services are a little more difficult to negotiate. Say you work in the medical field and agree to accept installment payments from a patient. If they miss payments, you can’t undo the service you have provided them with. What you can do, though, is outsource medical billing to a third party who will reclaim the costs on your behalf.
Consider Only Taking Up-Front Payments for Products
Sometimes in business, you might want to stick to the old adage, “never a borrower nor lender be”. Offering the “buy now pay later” scheme comes with consequences. Bear in mind that individuals accepting these offers can’t actually afford the goods and services you’re offering. If they could, they would pay for them. So, you could avoid a whole lot of financial mess on both your part and their part by only accepting up-front payments on purchases. This will simplify things for everyone and lift a weight from both parties’ shoulders.
Reclaiming money that you’re owed may be a bit of an awkward process, but it’s important that you do follow it up. Otherwise, you’ll find yourself out of pocket! Follow the steps above to help things run more smoothly in this aspect of your business.
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