Departmental collaboration is greatly important in the Collections/Billing department. This team must have access to project /product status, project/product delivery and results; this will allow the Lead person handling the over-due account to develop an understanding of the situation, survey the client to ensure requirements were met and if they were not met deliver this information to the production team. In other words, the Collections Team can be an extension to the sales, marketing, production teams by acquiring additional Voice of the Customer data.
For example, it may be that the Project Manager is not effectively translation the client’s requirements into product/service specifications. This will prompt the need to test and implement process controls that ensure product/service specifications meet client requirements.
By utilizing payment plans, longer payment terms (Net 30-90), broader payment options (checks, credit cards, debit cards, PayPal, et cetera), engaging in daily communication and understanding of the client’s needs and situation can ensure an enduring relationship and stronger cash flow.