The collections process can be tricky for any company, but especially for distribution companies who deal with large volumes of customers and deliveries on a daily to weekly basis. You need customers to be current in order to protect your revenue flow and keep your operations moving smoothly, but you must also be careful not to damage the personal relationship you’ve formed with your customers.
The good news is that there are new ways to not only make your collections efforts easier, but to help you improve cash flow and simplify your administration all at the same time. The same technology can be employed whether you operate on a payment due upon delivery basis or a monthly billing basis.
When payments are due on delivery, automated systems enable you to securely store your client’s bank and credit card information and then notify them that you will be processing their payments automatically upon delivery. While this may require some early authorization during the customer set-up process, long-term it will help ensure timely payment on deliveries.
If you allow your customers to pay open invoices monthly, you can set up invoices to be paid on a predetermined date through stored ACH or credit card payment information. Regardless of the timing and rules set for your customers’ automated payments, you can notify them electronically of invoicing and presentment documents, including upcoming payment reminders and receipts. This helps enhance your customer experience by offering a convenient, flexible and simplified payment process.
By implementing automated payments, you will be able to increase your cash flow, while reducing operational costs and improving customer service.