You’ve probably heard this before, but it’s always a good reminder to any business owner… unpaid balances are not only an inconvenience to you, but they can also set your business back tremendously. Regardless of the size of your business, unpaid balances can and will impact your cash flow. Which is why it’s important to have a plan in place on how to communicate with customers that owe you money.
Last week, we addressed the topic of failed payments and how to stay on top of them. So, how are failed payments different from unpaid balances?
Now that we’ve outlined the differences in failed payments and unpaid balances, we can cover our recommended best practices for staying on top of unpaid balances.
First things first, you need to know what clients owe you money, what they owe you for, and how much they owe you. Using Upper Hand, you can export all of this information using our Balances Report. See how to export the list, waive a balance, or pay a balance here.
For clients in memberships or payment plans, it’s critical that you address any unpaid balances immediately to avoid this happening in the future, affecting your monthly recurring revenue.
Tip: Clients with payment plans will only appear on the Balances Report if a payment becomes past due.
Once you’ve got your list, it’s time to contact your clients. Keep in mind sometimes the unpaid balance is unintentional, so approach your client with grace. Whether via email, phone call or in person…we know this can be an uncomfortable task, so here’s a quick template to help you approach the conversation:
Phone Call:
Hi (name)! We were so glad you were able to attend (event name) on (event date). Our records indicate there is an outstanding balance for the event. Could you please provide us with the best payment information so we are able to fulfill this outstanding balance? We appreciate your business.
Email:
Hi (name),
We were so glad you were able to attend (event name) on (event date). Our records indicate there is an outstanding balance for the event. Please give us a call at (phone number) at your earliest convenience with the best payment information and we will get this taken care of. We appreciate your business!
At the end of the day, how you communicate with your clients regarding unpaid balances is up to you. Having a structure and process in place to ensure these balances aren’t piling up is key to a healthy future for you and your business.
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In our latest edition of The Huddle, we outline the most frequently asked questions regarding memberships with Upper Hand. Why aren’t memberships automatically cancelled when they reach the commitment length? This not only gives Staff Admins the ability to lock in business for a certain amount of time, but it also gives the client the flexibility to continue their membership at a given rate. This is another way to keep steady revenue flowing into the business.
We may have had a few tricks up our sleeves last month, but we have a lot of treats to share with you! From new