Businesses may be reopening after a chaotic year, but many of them are hanging on by a thread. Companies that offer products and services on credit or installments find it difficult to maintain positive cash flow. Customers are weeks, if not months, behind on their bills and have a low priority on maintaining these financial obligations as they strive to survive. Consequently, if businesses can’t find a way to bridge the gap, the lack of capital could cause them to go under.

The question is, how do you get customers to pay their bills when they’re barely getting by? Aside from ensuring that you’re available to listen to their comments and concerns, here’s a closer look at practical solutions to bridge the accounts receivable gap in a post-pandemic world.

Offer Discounts

While slashing the amount due on customer accounts reduces how much your company receives, it’s a lot better than an unpaid balance. When customers receive an opportunity to save on bills, they tend to jump at the chance. Decide how much you can reasonably afford to lose and offer the savings to your customer to close your accounts receivable gap faster.

Remove Late Fees

Do you tack on a fee if a customer pays a bill late or misses a payment? Although late payments cost your business money, removing them from customer accounts can entice them to pay their bills more efficiently. Contact customers with several late fees on their account and offer to remove them in a one-time offer. Whether it’s $5 or $50, they’ll appreciate the savings and try to take advantage of the offer.

Lower Or Remove Interest Rates

Consumers spend a great deal of money on interest rates, which can get discouraging. They pay for months or even years, barely putting a dent on the principal balance. If you’d like to encourage them to pay their bills on time and reduce your accounts receivable gap, perhaps you should lower or remove interest rates for a period. It provides customers with an opportunity to make progress on debt reduction.

Flexible Repayment Options

Life has been anything but routine over the past year. You can let your customers know that you understand by offering them flexible repayment options on their accounts. One concept is to break their balance due into equal amounts for easier budgeting, as variable expenses can be challenging to keep up with. Another suggestion is to offer due dates that are conducive to their pay schedule. Finally, accepting multiple payment methods ensures customers can pay the bill in the manner most convenient for them.

Rewards

Not being able to pay your bills is already stressful enough. Why make things worse by threatening consequences for individuals that have simply fallen on hard times? If they are bombarded with additional fees, multiple phone calls, and negative ratings on their credit, chances are they’re going to feel like repaying the bill is impossible. 

Instead of focusing all your efforts on issuing late fees and other collection efforts, consider offering rewards for positive accounts. If a customer knows that they can receive a discount on future products and services by paying their bill on time, they’re more inclined to try and get their balance down to zero. The rewards don’t have to be costly for your company. Something as simple as a $5 gift card or a few bucks off their next bill can make a big difference in getting customers to pay.

A global health crisis brought more than just widespread illness and loss; it also created an economic hardship that could take years to bounce back from. As a business owner operating in a post-pandemic world, these financial challenges have built a large account receivable gap. While you’re anxious to get your cash flow back on track, you may have to think outside of the box to bridge the gap. By using suggestions like those provided above, you can encourage your customers to pay their bills as you continue to navigate these ever-changing times.