ACCOUNT IS OVERDUE
Call customer to find out why the account is late. Perhaps the invoice has be misplaced or the customer is trying to find out how long you will let the account go before trying to collect. Call to communicate your concern.
AGING ACCOUNT PAYMENT RECORD
This means the customer is taking longer and longer to pay his bills. On a 30-day account, payment may now be averaging 26 days instead of the 15 days previously averaged. A tactful inquiry may help to get the customer paying sooner.
FINANCIAL SITUATION CHANGES
Changes
– for better or worse in a customer’s financial statement are important. If the
financial picture has improved, the customer may be eligible for a higher
credit limit. However, if the company
has its credit rating downgraded, has taken out a large loan or shows lower
earnings, payment problems may arise.
CREDIT LIMIT IS EXCEEDED
Find out why the customer has ordered more than his credit limit allows, before taking further action. Perhaps the limit is too low and should be raised. Maybe the customer doesn’t realize the limit has been exceeded.
PAYMENT PATTERN CHANGES
Similarly, some customers may be paying “on account”. As a result, their average balances are rising and receivables are aging. Find out why payments have slowed.
CHANGES IN MANAGEMENT
New officers and directors always signal a change. Perhaps they represent new ownership that may want to change the way the company operates. A new president’s experience often indicates a change in the emphasis a company gives to a function.