Preventing Overdue Accounts

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There are several ways to prevent overdue accounts. Some ways to prevent an overdue receivable account is You can check the credit history of the customer to see what their repayment history looks like. Review the credit references and give them a call to see if the customer is in good standings with their other accounts. The credit reports shows historical payment data, bankruptcy records, any lawsuits, liens and court judgments against a company, and a risk rating that predicts how likely a customer is to pay their bills. If the customer does have bad credit then it’s up to you to take the chance and offer your services. It is sometimes not so good to turn down customers due to a bad credit report because it can cause you a chance to blow a great business deal. But also Keep in mind that if they already have a problem with paying bills and if you choose to still do business with them you can set up a payment arrangement to have the bill automatically drafted out of the account every pay period. This way the payment is never late. This is sometimes the best route to go rather you are bad with paying bills or not. It’s considered a safe haven. I personally prefer this method. You can also have the customer pay for the entire bill upfront at the time of service so they are starting off the repayment process with a zero dollar balance. Some may wish to have the customer do a down payment for the service and pay the rest on the upcoming due date. Be sure to either stamp, highlight or circle the due date with the customer present so they can see it. You can also contact the customer via telephone, mail or email and give them a friendly reminder about a week before the invoice is due. Being that bills are sent out in a timely manner this reminder will help them remember just in case it slipped their minds. Some people have several bills due on the same day so it is

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