Managing your company’s cash flow can be difficult, especially if you have a particularly thick debtor ledger. As more borrowers fail to make payments, your bank account will start running low on capital. Over time, this can make it difficult to keep your company operational, and you might have a tough time buying new supplies or even paying salaries.

If cash flow has been causing hindrances, then it is time for a good ledger spring cleaning session. Let’s take a look at how to do exactly this.

• Review your Ledger
  Start by reviewing your ledger. You should audit all outstanding invoices and identify invoices or client accounts. Create two lists or stacks for your ledger.

• Overdue Accounts
  Identify all of the invoices or client accounts that are overdue and list them under this pile. This usually includes debtors with accounts that are 30 days or more overdue. 
• Accounts Approaching Their Due Date
  Next, list all of your debtors who are close to being overdue on payments and place these on an additional pile or list.

This is an important step since the debt recovery strategy is different depending on just how far the debtor is overdue on payments.

After sorting your ledger, you can sort the debtor categories by debt overdue range (30 days overdue, 60 days overdue, and 90 days overdue).  This step will help you prioritise your follow-up urgency and the general tone of debt recovery communications.

• Consider A Debt Collection Agency

By now, you have already spent a lot of time categorising your debtors. As you can imagine, the communication and recovery processes will take even more time. It might be good to consider hiring a debt collection agency at this point. These professionals will take care of all of the hard work for you while ensuring that your company stays fully compliant and professional.

You can start by outsourcing our list of overdue debtors to your local debt collection agency in Victoria. Start with those with urgent accounts (overdue for more than 60 days).  

What Victorian Debt Collectors Will Do for You

Your debt collection agency will take full charge of all of your overdue debtors. They will handle all recovery processes, including the following:

Communication

Debt collectors will send out reminders to all of your debtors to remind them of the pending payments. The communication tone can vary from polite to urgent depending on how far the debtor is overdue. Each of your debtors will receive personalised communication via phone, SMS, email, or physical mail. They will be reminded frequently of the due amounts or the due pay dates. 

Offer Flexible Payment Solutions

Debt collectors in Victoria can also help you develop flexible payment plans for your clients. These strategies can make it a little bit easier for debtors to pay up, so you can increase your chances of recovering funds.

Maintain Accurate Records

Your debt collection team will keep detailed records of all of the communications, reminders, and agreements that were made with the debtor.

Strategic Escalation

Messaging or contact will be escalated depending on how far the debtor is overdue. This can range from polite phone calls to formal letters of demand.

Get Help Spring Cleaning Your Ledger

If you need help spring cleaning your ledger and getting debtors to pay up, then we welcome you to reach out and contact Vic Collect. Our Victorian debt collection agency is highly skilled at recovering overdue debt and will help you manage, maintain, and spring clean your ledger for you. We will also take charge of debt recovery processes so you can continue focusing on other aspects of your business.

Contact Vic Collect now to find out more about our free debt collection services.