Debt collection can be one of the worst tasks a small business owner has to undertake to remain profitable. It is not only embarrassing, but you never know how a client or customer will react. Using sms software, you can reduce these awkward situations by sending friendly reminders before the bill becomes due, send past due notices and send other information about payment via text message.

Friendly Reminders

Send out text messages a week or a few days before a client’s bill is due to remind them to pay you. In many cases, unpaid bills are not the result of unethical behavior, but rather forgetfulness. Send a simple reminder that includes the due date and payment options. This allows clients and customers to get their finances in order to make a payment or contact you if they need an extension.

Past Due

Rather than get on the phone or send a group of terse emails, send a past due notice via text message. Include the same information as the payment reminder, except stress that the due date has passed. Using a text message service to send out these types of alerts reduces the time you have to spend tracking people down and may prevent arguments or tempers from flaring when people are confronted with unpaid bills.

Past Due – Second Notice

If a client or customer still hasn’t paid for services they received, send one more text message stressing the urgency for payment a few days after sending the past due notice. Include the past due date and final due date. Ask people to contact you as necessary to make arrangements for payment.

In most cases, people will pay when they receive a second notice of late or non-payment. Send an email or letter to their home to create a paper trail in case you have to go to court to sue for payment.

Text Messages Reduce Stress

Even though you will be under a little bit of stress if people fail to pay you on time, sending mass text messages to clients or customers beats having to sit behind your desk all day making phone calls, leaving messages and arguing with people. Reduce stress by sending a few short messages so you can get on with other business tasks.

Use text messages to communicate with clients and customers about changes in payment, rise in service costs and other important information they need to know about your business.