Debt Collection for a Small Service Business

debt

Debt collections on outstanding invoices in arrears can be a problem for any small business owner, especially a small service business. When work is done with payment due Next 30 days, the issue of accounts receivable collections can be even more severe.
State Terms of Service Foremost and Clearly to Avoid Debt Collection Problems

Small actions before starting a job can make a huge difference in account receivable collection. Many times, the problem does not occur when trying to collect the debt. The problem took place during the initial conference with the new client. Some owners are reluctant to lay out terms of service. Terms of service should be fully understood before work begins.

Avoid Debt Collection Problems

Verify New Clients to Avoid Debt Collection Problems

Depending on the type of service provided, there is usually an amount of time to check a new customer, which will eliminate a lot of debt collection headaches. A new client can be verified relatively easily and usually in a short period.

1) Better Business Bureau

2) Check credit credentials (trade associations)

3) Check any online credentials

4) Credit verification services (worth the cost if no other verification means are available)

5) Ask for and verify references

6) Check with other business associates in your industry to see if they know this client

If the prospective customer’s business dealings show him/her to be unsatisfactory, then a denial of services is appropriate and necessary. A “deadbeat” is a habitual non-payer. They usually do not change.

Send Monthly Statements to Avoid Debt Collection Problems

Monthly Statements

Sending a monthly statement is sometimes considered an “outdated” practice. When accounts receivables run over a 30 day period for payment, reports are essential for accounts receivable collections. If an invoice is paid on time, there is some profit. If an invoice is 30 days late, there is no profit and possibly a loss. By the time an invoice is 90 days old, labor and materials are not even covered.

Be Persistent in Collecting Invoices

Be Persistent in Collecting Invoices

Check on overdue invoices promptly. Do not wait until they are 30 or 60 days past due. Follow up within two weeks. Keep sending monthly statements, requesting payment. Make phone calls where possible. Be aware that a “friendly” offer is more appreciated than a harsh one and will be more successful in invoice collections. Persistence is the key. The client should learn that you will not go away. It is true that “The squeaky wheel gets the grease.”

In a small service business, labor and taxes can run from 70 to 80 percent of the gross income. It is important to keep accounts receivables revolving to ensure that payroll can be met and bills paid. Be diligent in:

1) Make sure the client understands the terms of service

2) Checking any credit references

3) Staying on top of outstanding invoices (be persistent)

It is usually impossible to eliminate all bad debts. Collection agencies are expensive, and filing liens are time-consuming. If the mentioned practices are followed diligently, then bad debts will be at a minimum. Anything that can be done to limit bad debts before they happen can and should be done.

Scenes From the 2015 Pebble Beach Tour

Admit it. There are times when you wish you could get away from it all by moving to your own private island. Well, some cruise passengers actually can at least for a day. Each of the following cruise lines below offer passengers a day of fun in the sun on their very own private island. For many cruisers, this stop is the highlight of the trip. After all, what could be better than sitting on a white-sand beach, drinking a pia colada and soaking in the rays without crowds?

“It’s a wonderful destination, we will come back next year for sure!”

All of these islands have pristine shores, swaying palm trees, aquamarine waters and lots of ocean-side adventure. There usually are fees for shore excursions and equipment rental. Every destination offers something a little different for cruise passengers.

View of buildings on the coast of tropical island San Andres y Providencia

Even at first glance, CocoCay looks like the quintessential Caribbean hideaway. There are wide stretches of beach in quiet coves, island huts in bright Caribbean pinks and blues, and a colorful straw market offering Bahamian crafts and goods.

Many of the island buildings look brand new and they are. In 2002, the company invested more than US$ 21 million to turn this 140-acre (0.5 km) slip of land into a destination their passengers would never forget. Nature trails wind through the isle, which is home to wild chickens, peacocks and occasional iguanas. Those seeking solitude will enjoy the hammocks that are hung under coconut trees in quiet locations.

English Harbour, Hurricane Hole

Sea lovers have plenty of activities to choose from. Hop on a jet ski (US $ 95 for 50 minutes) and speed across waters so clear that you can see orange starfish 20 feet below, or don a snorkel mask and explore life under the sea up close.

For a great view of the island, try your hand at parasailing (US $ 79 per hour). You’ll soar 200-400 feet in the air and maybe even take a cooling dip in the water before returning to the boat. Children will enjoy Caylana’s Castle Cove and SeaTrek Aqua Park (US$ 15 adults, $10 children). Its floating sand castle and aquatic trampolines are just the things for those who are young at heart.

A staff of 45 people lives on CocoCay, and it’s obvious they take pride in keeping the island’s natural beauty in top condition. Their pampering service makes the island experience so pleasurable that you won’t want to leave when dusk falls all too soon.

“Disney knows children, so it’s no wonder that they feel at home on Castaway Cay”

The cruise ship docks right at the island (other cruise ships use tender boats to ferry passengers back and forth), so youngsters can head right down the ship’s ramp and out to explore Castaway Cay. There is a beach just for families, and Scuttle’s Cove is a safe and fun club for children. Parents need some time on their own, so there is Serenity Bay, a secluded beach for adults. For a little pampering, have a relaxing massage in the open-air cabanas at the seaside spa.

Street in Key West

Game for a little exploration? Then grab a bike (child seats are available for little ones) and hit the trails (US$ 6 per hour). This is, after all, a secluded island getaway, and there are miles of empty shoreline and tropical forest to explore.

If you prefer the water, check out the Walking and Kayak Nature Adventure ($60). Participants walk with a guide through the island’s lush fauna and kayak through an ecologically sensitive mangrove environment. If paddling wears you out, just jump in for a refreshing swim in the crystal clear island waters.

Teens can get into their own adventure on The Wild Side (US$ 35), an excursion that includes snorkeling, biking and kayaking. Families who want to adventure together can try the Seahorse Catamaran Snorkel Adventure (US$ 49 adults, US$ 29 children). This easy 45-minute sail takes you out to calm waters and unspoiled coral reefs. Even younger children will enjoy floating in the turquoise Caribbean Sea with schools of colored fish.

View of the Caribbean Sea

Visitors to the tiny islet of Motu Mahana (Polynesian for sunlit island) are greeted with the sounds of Polynesia. Les Gauguines, an eight-woman song and dance troupe, perform beguiling love songs in their Polynesian tongue while guests enjoy a scrumptious feast under the shade of thatched huts. After lunch, guests can relax in the sea or wade for yards in the shallow waters while waiters wearing bathing suits offer tropical drinks to those in need of refreshment. Try out the complimentary water sports like kayaking or snorkeling. For a different experience, board a motorized outrigger canoe and head to the beautiful island lagoon of Tahaa. Tahaa is known for two things: producing vanilla and black pearls.

Guests can take a four-wheel drive tour into the hills to tour the vanilla plantations (US$ 65) or view French Polynesia’s rare jewel, the black pearl, at the Motu Pearl Farm (US$ 64). From there, head to the lagoon for some quality time with the region’s underwater fauna. There is even a small lagoonarium where rays, turtles, sharks and fish are enclosed in four different pools.

Mercedes-Benz Plans GLE Hybrid to Debut in New York

Admit it. There are times when you wish you could get away from it all by moving to your own private island. Well, some cruise passengers actually can at least for a day. Each of the following cruise lines below offer passengers a day of fun in the sun on their very own private island. For many cruisers, this stop is the highlight of the trip. After all, what could be better than sitting on a white-sand beach, drinking a pia colada and soaking in the rays without crowds?

“It’s a wonderful destination, we will come back next year for sure!”

All of these islands have pristine shores, swaying palm trees, aquamarine waters and lots of ocean-side adventure. There usually are fees for shore excursions and equipment rental. Every destination offers something a little different for cruise passengers.

View of buildings on the coast of tropical island San Andres y Providencia

Even at first glance, CocoCay looks like the quintessential Caribbean hideaway. There are wide stretches of beach in quiet coves, island huts in bright Caribbean pinks and blues, and a colorful straw market offering Bahamian crafts and goods.

Many of the island buildings look brand new and they are. In 2002, the company invested more than US$ 21 million to turn this 140-acre (0.5 km) slip of land into a destination their passengers would never forget. Nature trails wind through the isle, which is home to wild chickens, peacocks and occasional iguanas. Those seeking solitude will enjoy the hammocks that are hung under coconut trees in quiet locations.

English Harbour, Hurricane Hole

Sea lovers have plenty of activities to choose from. Hop on a jet ski (US $ 95 for 50 minutes) and speed across waters so clear that you can see orange starfish 20 feet below, or don a snorkel mask and explore life under the sea up close.

For a great view of the island, try your hand at parasailing (US $ 79 per hour). You’ll soar 200-400 feet in the air and maybe even take a cooling dip in the water before returning to the boat. Children will enjoy Caylana’s Castle Cove and SeaTrek Aqua Park (US$ 15 adults, $10 children). Its floating sand castle and aquatic trampolines are just the things for those who are young at heart.

A staff of 45 people lives on CocoCay, and it’s obvious they take pride in keeping the island’s natural beauty in top condition. Their pampering service makes the island experience so pleasurable that you won’t want to leave when dusk falls all too soon.

“Disney knows children, so it’s no wonder that they feel at home on Castaway Cay”

The cruise ship docks right at the island (other cruise ships use tender boats to ferry passengers back and forth), so youngsters can head right down the ship’s ramp and out to explore Castaway Cay. There is a beach just for families, and Scuttle’s Cove is a safe and fun club for children. Parents need some time on their own, so there is Serenity Bay, a secluded beach for adults. For a little pampering, have a relaxing massage in the open-air cabanas at the seaside spa.

Street in Key West

Game for a little exploration? Then grab a bike (child seats are available for little ones) and hit the trails (US$ 6 per hour). This is, after all, a secluded island getaway, and there are miles of empty shoreline and tropical forest to explore.

If you prefer the water, check out the Walking and Kayak Nature Adventure ($60). Participants walk with a guide through the island’s lush fauna and kayak through an ecologically sensitive mangrove environment. If paddling wears you out, just jump in for a refreshing swim in the crystal clear island waters.

Teens can get into their own adventure on The Wild Side (US$ 35), an excursion that includes snorkeling, biking and kayaking. Families who want to adventure together can try the Seahorse Catamaran Snorkel Adventure (US$ 49 adults, US$ 29 children). This easy 45-minute sail takes you out to calm waters and unspoiled coral reefs. Even younger children will enjoy floating in the turquoise Caribbean Sea with schools of colored fish.

View of the Caribbean Sea

Visitors to the tiny islet of Motu Mahana (Polynesian for sunlit island) are greeted with the sounds of Polynesia. Les Gauguines, an eight-woman song and dance troupe, perform beguiling love songs in their Polynesian tongue while guests enjoy a scrumptious feast under the shade of thatched huts. After lunch, guests can relax in the sea or wade for yards in the shallow waters while waiters wearing bathing suits offer tropical drinks to those in need of refreshment. Try out the complimentary water sports like kayaking or snorkeling. For a different experience, board a motorized outrigger canoe and head to the beautiful island lagoon of Tahaa. Tahaa is known for two things: producing vanilla and black pearls.

Guests can take a four-wheel drive tour into the hills to tour the vanilla plantations (US$ 65) or view French Polynesia’s rare jewel, the black pearl, at the Motu Pearl Farm (US$ 64). From there, head to the lagoon for some quality time with the region’s underwater fauna. There is even a small lagoonarium where rays, turtles, sharks and fish are enclosed in four different pools.