Running a business can be trying. Oftentimes it is necessary to call upon a debt collection agency for help collecting money that is owed. However, if companies take a stance of prevention, they may not need to use the assistance of a third party collections agency. Knowing the client or customer can be extremely useful for filtering out potential problems.
First, a business should determine the full legal name of the customer that it plans to do business with. Find out the type of business structure. Is it a corporation or a partnership? The names, addresses and titles of the principal members should be collected.
It is important to know the federal employer tax identification number. The telephone number, ship to address, name, fax number and email address of the main contact should be known as well. Additionally, the bill to address, fax number and telephone number of the accounts payable contact is a good piece of information to know. Individuals authorized to submit orders should be listed.
Ask about bank references. Find out what the bank\’s name is. The branch address, fax and telephone numbers, account types, account numbers and dates opened can be useful information. The name of the bank representative should be also be collected.
Finally, the conditions and terms of sale should be acknowledged and accepted by the customer\’s signature. The client\’s signature, printed name, date of signing and title should be collected, and always have the company\’s attorney look over any documents before use.
Be aware of the customer\’s credit history and keep decent communication through phone calls or personal visits. Keep an up to date delivery of goods and services, and up to date records and accounts receivable information. Mail out memos and letters to remind the client about the money owed and keep them up to date.
Join an industry credit group and participate actively. Always know the laws in your state regarding collections and business proposals. To protect the company, be sure to collect references. Bank references, including the bank name, branch, account type, account number and trade references are important to know. Collect at least three trade references that include the name, address, telephone number and email addresses.
Mallory Megan is employed by a debt collection agency. Also she composes stories about business, finance, consumer spending and debt collection.
