Creative Ways to Collect Unpaid Invoices
Regardless of what industry your business is in, there are going to be times when invoices owed to you become past due. No matter the reason, getting past due clients to pay overdue invoices is often a job in itself. You send reminders and try to contact debtors, but they just aren’t paying - what else can you do to get the money you’re owed? If you’re not having any luck with contacting your debtors and using typical debt collection methods, there are some creative solutions that you can try. At Capstone Collections, we know how different each debtor can be, and different tactics might work better with different debtors. Here are some creative things that you can try to collect unpaid invoices.
Alternative Payment OptionsIf your debtor is having difficulty paying because they are low on cash, you may want to consider an alternative payment option. Do you need specific inventory or products that your debtor’s business offers? Do they have the ability to offer you stock in their company as a form of payment? There are more ways to be paid for debts, and depending on the situation, alternative payments may be an even better option. You shouldn’t offer alternative payments to all customers that owe you money, and you should always focus on collecting monies owed versus other payment options. Work with your debtor to understand their situation and work through creative payment solutions.
Incentivise PaymentsA great way to get your invoices paid is to offer an incentive for paying the
invoice. Offer a discount or other incentive for paying off the invoice entirely or making payments by specific dates. Discounts may not be ideal if you’re relying on the full amount to be paid for your business, so you may want to try other tactics to get clients to pay invoices. Offer promotional prices on additional purchases, or potentially provide a freebie on their next purchase by paying their entire invoice by a specific date. Many times it isn’t a lack of funds that limit a client from paying, it’s often lack of motivation. Giving clients a bonus or incentive can give them just the motivation they need.