Delinquent accounts occur during the course of business, but that doesn’t make them easy to deal with. Actually, the longer you put off dealing with them, the harder it will be for you collect on them. One of the best ways to handle delinquent accounts is to be proactive to minimize the number of accounts that go past due. Here are 5 tips to help you get started.
Have a Credit Approval Process
If your clients don’t have to pay their balance in full at the time they receive services, it is important that you have a credit approval process in place. Credit may be important to your business because it helps you provide your services to more people in your industry. That can be great, but if you give credit to someone who isn’t creditworthy (or if you give them too much credit), you endanger your business. You can read part one of Client’s ARM credit policy set-up process here.
Follow-up the Day After the Payment Was Due
Don’t wait weeks or months to follow-up on delinquent accounts. The follow-up process should begin the day after the payment was due. The purpose of following-up this early is two-fold. First, you’re able to learn if your client simply forgot that the payment was due today. Second, you get the opportunity to ascertain if your client is having financial difficulties. This one action can help you figure out your best course of action for the account in question.
Payment in Full
Another way to protect your business against delinquent accounts is to require clients to pay in full before services are rendered. If you’re already involved in the collections process with an account, you can provide a small discount if the person can afford to pay the account off.
If you’re working with a client or patient base who may not be able to afford to pay you up front, help them find a solution to their financial issue. Clients ARM provides a free tool to help your clients get the funding they need to pay you in full. Just refer them over to this link and we’ll do the rest.
Customize a Repayment Plan
One way to get paid on delinquent accounts is to offer a custom repayment plan. Take the entire scenario of your client into consideration. An affordable repayment plan will help your clients pay off their bill. It might take you longer than you’d like, but it’s certainly better than a client filing bankruptcy and you facing the potential of getting nothing for the debt owed to you.
Update Information at Every Visit
If you take a discount plan or an insurance plan, make sure that you update personal and plan information at each visit. This can help you avoid delinquent accounts by giving you the most current information to file claims. If you work in a healthcare facility, you can get help with your electronic insurance claim filing from Clients ARM.
Clients ARM Can Help with Your Delinquent Accounts
Clients ARM has more than 30 years of experience handling delinquent accounts. We can help! If you’re struggling with past due accounts, contact us today to book your free consultation.