Collecting AR in COVID

When ARs move in the 31-60 day range folks responsible for collecting the money start to get nervous.

Sure, part of the reason they are nervous is because they are soon to make an uncomfortable call. Conversations about money are rarely easy going and pleasant.

If we go further, the anxiety attendant with collecting aging ARs is likely more connected to frustration flowing from knowing this was likely avoidable.

What do I mean?

By this point in the COVID epoch everyone associated with AR/AP knows that for the majority of businesses, liquidity is tight or there is a concern regarding liquidity.

So let’s address this issue before it becomes a problem

Below is a general template we built out to help guide you when collecting aging AR.

The rightful presumption is that the customer wants to pay. Delays in payment create embarrassment. And embarrassment begets more embarrassment. Let’s ensure this vicious cycle never engages.

So this template is sent out before invoices are sent. This way your customer knows you are empathetic and aware of the situation. If something does arise that causes an interruption in the flow of timely payments, the customer knows reaching out for help will be met with empathy.

Below is the template.

Yours in success,

Wally and Team SeeSaw

Greetings Customer,

We here at Company XYZ understand the difficult economic climate we all are operating in.

If there is ever an issue with payment because of economic circumstances, we want to work with you to arrange a payment plan that works for you.

If there are other issues preventing payment, please also let us know.

Our real ask here is to have you connect with us and let us know what the situation is. That way we can come up with solutions.

What to do when you anticipate having an issue paying on time?

Simply connect with us using one of the means below.

We get it. These are tough times and we will work with you.

The hope is of course your success prevents this, but these are unprecedented times.

We are partners and in this together.

Here is how you can reach us:

Email: AR@companydomain.com

Text: 206-867-5309

Phone: 206-555-4544

Once we connect, we can make arrangements and carry on in good terms and standing.

Thank you,

Company XYZ