03 May Could A VA Be Your Debt Collector?
There are a lot of fantastic things involved in being a business owner. But one of the universal downsides if having to deal with late payments. Around 72% of self-employed and small business owners report being paid late on a consistent basis, and with all the financial stresses of Covid-19 that situation hasn’t improved much over the last year! When we speak to customers, we find they’re often reluctant to start chasing their overdue invoices, and instead end up leaving them to get more and more overdue. Sometimes to the point that it significantly impacts their cashflow! But we’re here to say that it doesn’t have to be that way. You can get your invoices paid on time without having to chase them yourself, and preserve those valuable client relationships at the same time.
How? By hiring a VA of course, and let us be your debt collector!
How Can A VA Help Be A Debt Collector?
Cashflow is the heart and soul of every business, and you want to make sure yours is flowing properly. But to do that, you need to have the time and energy available to chase any clients who decide to pay their invoices late. Which is challenging, and one of the big reasons business owners often leave late payments alone for far too long.
Hiring a VA to help with debt collection can ensure your invoices are going out on time and payments are coming in on time too. We can catch any problems that might be causing late payments and solve them, as well as providing a professional accounting department for your business.
A few of the benefits our clients have seen by using a VA to chase their late payments include:
- Saves time – chasing invoices, reconciling balances and finding missing payments is time consuming, and that’s all time that could be better spent serving clients or developing new business.
- Saves awkwardness – Not many people enjoy talking about money, and that makes chasing invoices a very difficult process for a lot of people – especially if it’s a well-established client who isn’t paying their bills. Outsourcing to a VA takes the pressure off you, and removes that awkwardness completely.
- Saves money – Not being paid costs you money, and a lack of positive cashflow can and has put businesses under. Paying a VA a set fee to deal with your credit control and debt collection can pay for itself very quickly, and keeps your business cashflow looking healthy.
How Does it Work?
Luckily for you, the mechanics of using a VA as a debt collector are pretty simple, especially if we’re already handling invoicing for you. Once we have access to your accounting software, we can keep track of who is due to pay and when. As soon as an invoice becomes overdue, we give the client a call and check in with them – reminding them that the invoice is now overdue and making sure it’s on their radar. 9 times out of 10 this is all it needs, and invoices are paid quickly.
If the invoice remains unpaid, we will continue to call the client and remind them that they need to pay your invoice. If there are difficulties their end, we can offer solutions (that have been pre-approved by you) to ensure payment is made as soon as possible. We will continue to do this, and include follow-up emails after the second call, until the invoice is paid. If it isn’t, we can advise you on the next steps to take to claim the money owed to you.
Why Does Hiring a VA Debt Collector Work?
So now you know how it works, the real question is, why does it work? Because for many of our clients after using us for debt collection for a month or so, the number of late invoices tends to go down significantly. This is mainly because we are a separate entity to your business, and this holds a bit more gravitas for your clients. If you’re a sole trader or one-man band, it’s all too easy for bigger clients to try and take advantage of you, knowing there isn’t too much risk involved for them. But if there is someone else chasing them for those payments, it makes you seem like a bigger organisation, and shows you are serious about your invoicing. It also works because we aren’t the ones who have a relationship with that client – which means we can be more direct and firm with them, without worrying about damaging that relationship. So you can stay the good guy, and get paid on time.
At Starfish Admin, chasing overdue invoices is actually one of our favourite things to do. We know, that makes us sound very strange! But we love making sure our clients are actually getting paid for all of their hard work, and years in customer service has made us very good at being firm and professional at the same time. So if you’re struggling with late payments, we would love to help you. Just get in touch today to book your free, no strings attached consultation.