B2B Payment Collection Management

B2B Payment Collection Management

B2B Payment Collection Management

 

When does your business become completely successful?

With a unique or extraordinary product? or when you do significant sales ?

No , Not at all!!

Key to any successful business is all three drivers : Unique product, Significant sales, and imperative payment collection a critical part where people fail to invest for exceptional results.

The payment collection function is more complex in Business-to-Business (B2B) than Business-to-Consumer (B2C) relationships but collections is plump for improvement, and so we decided to offer you some ideas on how to approach it.

Four Key areas of payment collection :

 

  • Credit Management
  • Dispute and Deduction Management
  • Cash Application and Accounts Receivable
  • Collections Management
  • Credit Management

 

Credit management is process of developing of credit policy for the on-boarding new customers i.e the payment schedule either as Monthly or Weekly to automate the workflow for controlling credit operations.

 

Dispute and Deduction Management

During payment collection , handling customer deduction is tedious as a result of shipping error , product quality, A system is required to highlight the root causes to avoid the deduction issues other side it will increase the revenue for the company.

Cash Application and Accounts Receivable

 

PAYMENT REMINDER :

 

Credit Period Call Remainder Mail Remainder
Current No need No need
0  to 16 Call reminder – 3 times per Day  Weekly once Mail reminder 1

 

16 to 30 Call reminder – 4 times per Day  weekly once Mail reminder 2
31 to 45 Call reminder – 4 times per Day  weekly once Mail reminder 3
Above 45 Call reminder – 4  times per Day weekly once Mail reminder 4

 

 

NOTE:If no response/information given by the customer, account manager needs to talk with The customer and do the needful steps to get the payment

 

MAIL REMINDER

Source Google

EXAMPLE MAIL:

Dear Sir,

Kindly let us know when can we expect the payment for outstanding invoice for XYZ Pvt Ltd the Outstanding invoice details are given below.

S.NO INVOICE CREATION DATE INVOICE NUM TOTAL INVOICE PENDING DURATION (DAYS) SHEDULED PAYDATE (XYZ) BRACH NAME AMOUNT
3) 2/8/18 461-18/19 32 6/9/18(we request advance) Mumbai 7000
4) 28/6/18 284-18/19 65 2/8/18 Mumbai 7279
5) 27/7/18 416-18/19 36 1/9/18 Bangalore 3000
6) 3/5/18 93-18/19 90 3/6/18 Bangalore 3000

 

Feel free to contact me for further suggestions & queries.

Thanks and Best Regards

AravindhanTeam

Snackexperts

9095598161.

 

 

THREE TIPS TO HELP B2B COLLECTIONS:

  • Invoice must be send properly so that Customer can be prepared beforehand for the payment.
  • With invoice coming at the same time every month clients will be well prepared to pay their payment

 ADVANTAGE OF TECHNOLOGY

  • An automated accounts system and payment reminder is helpful in B2B collections .

ENFORCE DEADLINES:

  • Our relationship with your customers in B2B collections is extremely important.

More on the Benefits of vCards:

1 Accounts Receivable Management Software.

3 Virtual credit cards provide much more security than physical cards.

 

INVOICE DETAILS:

 

Customer name (or) Company name.

Shipping address.

Shipping Date.

Product Details.

Amount Details.

Sales Orde number.

Invoice number.

Terms & Condition.

Account details.

 

INVOICE FREQUENCY :

 

  • Monthly Invoice.
  • Weekly Invoice.
  • Due on recipt.

 

CONCLUSION:

 

  • You can use various techniques to collect payments, all of which are faster, safer and easier than settling in cash.
  • Collecting payments electronically make things easier for yourself and your clients.
  • Having Payment gateway on your company’s website. Its makes more easier to buy goods and sending payment. You can receive payments immediately and safely with Payment gateway.

 

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