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Comprehensive Receivables Plan Veterinary Billing Services for Small Practices
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A
Comprehensive Receivables Plan
1.
Credit Policies
Every
business which grants credit should have a clear and understandable written
Policy for employees to follow. Sales
staff should know and explain the policy to customers at point-of-sale.
This is the first step in keeping a good account “good”.
Before granting credit, review the credit application and qualify the
risk. Remember: a “good”
sale is when the customer pays the bill, in-full and on-time. Your policy should
be flexible, have specific action steps and be consistently enforced.
A
written, step-by-step procedure for in-house collection should schedule each
step in the process and establish a time frame for response before continuing on
to the next step. As accounts age,
the chance of collecting decreases dramatically so it is imperative that the
process be consistently monitored and that accounts are constantly reviewed as
they progress through the in-house process.
Your
in-house staff must know the warning signs of possible bad debt:
·
Broken
promises ·
Repeated
trivial disputes regarding product or service delaying payment ·
Delays
paying due to “cash flow problems” ·
Promised
payment is less than agreed ·
Customer
avoids phone calls from in-house collector · A sudden “buster” order of a large quantity or of large value Use pre-collection demand letters
to reduce your bad debt write-off and collection costs and improve your cash
flow
Third
Party Intervention – When your customer’s invoice is past due, use our
2-letter series to prompt payment directly to you.
Third Party Intervention is a strong motivator, prompting payment in full
or a contact from your customer requesting payment terms.
Either way, you are in contact and control. The charge for this 2-letter series is $7.50 and there are no additional fees. You must inform TPI promptly when a payment is received or your customer contacts you to make other arrangements. At the end of 30 days, the Client has the opportunity to submit the account using the Submission Form. Our standard fee schedule would apply. TPI will acknowledge the submission and begin work immediately.
Contact Information
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