Christmas season can be quite challenging for managing your business accounts receivable revenue. You have this pressure to close all the unpaid accounts before the year ends. As a business owner, you are aware that the holiday month is the shortest work month of the whole calendar year. So there’s a higher possibility of failures when it comes to debt collection.
Also, many businesses have lessened the number of their staff a week before and after Christmas day since productivity is not stable during this month. For you to start the appropriate moves during and after the holidays, start preparing in advance to avoid further issues.
Many Debt Collection Agency stops making follow-ups, calls, sending emails, and letters during the holiday season, so if the money they owe to you is valuable, add extra effort into it.
Though the holiday could not be the perfect time to put some action, other people have numbers they demand to reach before the holiday comes to an end.
Below are some useful tips that can surely help you.
You need to have a prepared plan in December, where you need to put a lot of effort compared to other months. Because almost everyone is busy doing their things, making for vacations and holiday trips, and shopping for gifts.
Begin with reviewing all the outstanding balances, unpaid invoices, and slow-paying accounts before December comes in. The more a debt stays longer on your collections, the lower the chances of getting paid.
Always think of a plan where you can expedite payments that already past due before sending a courier to clear up the payment or a pre-paid delivery envelope. If you took action in advance and listed accounts that signify bad debt, you can have enough time to collect that money before the New Year.
The holiday season is not merry for everyone; others are having a tough time too. So, don’t forget to be courteous and kind every time you make follow-ups. It’s fine to acknowledge the holiday and other season’s greetings for your collection tasks.
Always be patient and understanding that not every people can pay you during the holidays, especially Christmas season, so make sure to send a follow up after the New Year.
This is also the perfect time to evaluate and identify clients if you’re going to visit them in person as you might encounter some red flags or signs to avoid in the future. Sometimes, you may find that a customer is facing challenges in their life; that’s why they can’t keep up with the debts. Also, you can see that other customers are not responsible for paying the money they owed to you.
A debt collector should be flexible when it comes to payment methods, payment terms, and other accommodations when collecting debts. Working with debtors on how to get out of debt, and offering some solutions could be a great way to help them.
Also, according to a survey, almost ¾ people in America use their credit cards as part of their last year’s holiday debt.
If you learn that a customer is in bad shape, then it’s time for you to take some immediate action. If you wait after the holidays, it won’t help to make debt collection easier. What you need to do is to create a business decision and forget personal reasons. Besides, a customer may have even less money due to holidays to pay debts, so it essential to act as quickly as possible.