1. Conduct due diligence

Before you extend any kind of service to a potential client, collect all necessary background information regarding them to ensure their legitimacy and credit worthiness. Run basic credit checks and make sure you have all the correct company information and documentation. Conducting your due diligence before engaging with potential customers can help avoid preventable financial risks.

2. Present payment terms and conditions immediately

Another way to streamline your debt collection process is by ensuring your client signs off on your payment terms and conditions. Ensure that you communicate your terms of trade clearly before extending any service so that they are well aware of payment terms transparently. Furthermore, include an outline of your agreed payment terms in all shared paperwork including contracts and invoices.

3. Have an efficient collection process

When and how you deliver invoices to your clients, follow-up can affect how quickly you receive payment. Set an internal policy on when you will invoice the client and what follow-up steps you will take if they don’t respond on time. For example, if you bill your client on the last business day of the month via email, make sure you send the invoice to the right person of contact on the given date. Then follow up with a brief email within a week, followed by a call within 2 weeks if the payment has not been made.

4. Outsource to a debt collection agency

If your client doesn’t pay within the agreed period of time and ignores communications, you may need to turn to a debt collection agency. Professional agencies have trained professionals with years of experience who can help preserve your client relationships while efficiently collecting your receivables. What’s more, the agency will be well versed on the legalities in the country you trade, the documents required to collect a debt, and the best practices. If you’re based in Saudi Arabia here are the documents you need to collect your debt and win your case.

At Fuel Collection, we understand that debt collection is a crucial issue for businesses so if you’re looking for experts to help streamline your debt collection process in Saudi