Accounts Receivable: Best Practices Fundamentals Part 2

In this second article of our four-part series on Best Practices Fundamentals we’ll take a look at these tips from First Merchants Corporation.

“A Well-Oiled Machine: How to Better Manage Your Accounts Receivable”

Offer credit carefully — Before granting credit to a new customer, do a check of his or her credit history. Also, be sure to contact a new customer’s business references.

Know your customers — The more you know your customers, their businesses, and the industries they operate in, the more you’ll gain an understanding of their habits and payment patterns.

Bill promptly — Send out invoices immediately after the delivery of goods or services.

Encourage prompt payment — Offer a small discount to customers who pay their bills early and charge a penalty to those who pay late.

Offer payment card options — Encourage customers to pay you with credit or debit cards where appropriate.

Set payment parameters — Ensure that your payment terms and conditions are clearly spelled out in all of your invoices. Keep good records and follow up on payments that are not received when expected.

Offer exceptional customer service — A satisfied customer is more likely to pay their bills promptly. Make sure you are meeting the needs of your customers.

The Jayaram Law routinely and successfully assists its clients in their business-to-business (b2b) collection needs.  We take pride in obtaining payment on accounts receivables without fracturing critical business relationships or engaging in time-consuming and costly litigation efforts.

If you need business debt collection services conducted in a professional manner, contact our B2B (business-to-business) debt collection law firm by calling 312.454.2859 or visiting