When I first started my MSP, I offered super generous Credit terms to my clients (and we rarely chased up old Invoices).
Then one day, out of the blue, one of my most beloved clients (a 100 year old charity that employed 600 people) went into bankruptcy owing me about $30,000.
It was a hairline away from sending us out of business.
I then went on a mission to remove as much risk in my Accounts Receivable as possible.
One of the things we implemented was a very tight automated Invoice follow-ups. We wanted to be the squeaky wheel getting the most oil. And, it worked.
Over about an 18 month period, we switched from having an Accounts Receivable balance that averaged $50k-$70k, to having an Accounts Receivable Balance that averaged around $5k – $7k.
AND – our Average Debtor Days went from about 52, down to 12 for the tiny amount of credit we had out there.
All while our revenue increased about 50%.
The key to making them successful, is to make them worded FRIENDLY, yet FIRM (as you’ll see these ones are).
So, if you’re currently acting like your clients BANKER – then if you’re not doing automated Invoice follow-up already – I encourage you to turn it on today (most accounting systems have it) and use these scripts as inspiration.
Your bank account and your sanity will thank you later 😁
Enjoy.. Nigel 🤓