4 Ways To Boost Collections For Your Cleaning Company

Jean Hanson

When times are tough, struggling businesses can be slow to pay their bills, so cleaning companies need to find ways to boost their collection rate in order to keep cash flowing into the business. Following are tips to help you develop collection strategies for late payers.

1. Use the telephone before sending letters. You'll get faster results when you simply pick up the phone versus sending a letter. In some cases you'll find it was a simple misplacement of your invoice or it's sitting in someone's in-box, and they'll make payment right away. Phones are also preferred because you've got two-way communication, which makes it harder for the client to ignore the situation.
   
   
2. Visit your client to remind them of the non-payment. Like a phone call, it's harder to ignore the situation when you're standing right in the client's office asking for payment. In most cases you'll leave with a check in hand.
   
   
3. Put a hold on your cleaning service before the customer gets too far out. Many cleaning companies are afraid of losing clients if they stop providing cleaning services, but it does you no good to continue cleaning if you're not being paid. You have to pay your cleaners after all! If you let it get too far out, they may not be able to repay the entire debt if their company is struggling. You'll probably be surprised at how quickly you get paid if you suddenly stop cleaning!
   
   
4. Send collection letters. Before putting a hold on your cleaning service, send at least one collection letter with a deadline for payment. Send no more than 3 letters; with the last one being a warning that you will be turning it over for collection. If you have not made any progress and feel uncomfortable about your situation, you should consider a collections agency. If you have a serious delinquency it could be a sign of a struggling business. A third party is effective because the client realizes that the situation has turned serious and they'll want to protect their credit standing.

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Jean Hanson helps owners of commercial cleaning companies build a more profitable and successful cleaning business through her online community at TheJanitorialStore.com. Jean is also the host of the popular Web TV show CleaningBiz.tv and author of the newsletter Trash Talk - sign up today!

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Copyright TheJanitorialStore.com. All Rights Reserved.
Jean Hanson helps owners of small cleaning companies build a more profitable and successful cleaning business through her online community at TheJanitorialStore.com. Read inspirational cleaning success stories at http://www.cleaning-success.com, and sign up for weekly cleaning tips at http://www.TheJanitorialStore.com.