Small Business? Here are How you can Improve Payment Collections

“We have steady sales, but we often fail to collect payments on time. As the number of unpaid invoices pile up, our business faces cash flow issues and the business growth slows down for obvious reasons.”

This story was shared with us by a business owner on a survey (identity not disclosed) and is true with most businesses in UAE and across the globe.

What are the Top Challenges in the Payment Collections Process?

The process of collection is tedious and sensitive and involves the following challenges.

  • Error-prone manual tracking of invoices and payments.
  • Manual follow-up for collections.
  • Difficulty in building trust and poor business relations.
  • Handling multiple ERPs and accounts.
  • Manual due date handling.
  • Distant mode of collections.
  • Limited payment modes.

Some Proven Methods to Improve Payment Collections

Accurate and Professional Invoice Management

The invoices should be professional and need to be generated as soon as sales are made.

Maintain an Ageing Report

For maintaining a healthy cash flow and collecting payments on time, there is a need to accurately track and manage the payment status of your clients. An ageing report can guide you with information related to collection status.

Avoid Delay

Send out invoices instantly and offer multiple payment options to your clients to get rid of bad debts.

Track the Payment Trends of your Customers

An understanding of the payment trend of a client can help in risk analysis. The accounts receivable portfolio needs to be tracked and analyzed accurately to avoid payment delays.

Technological Support

Take the support of technology to automate and improve the speed of collections. An advanced fintech solution can be the best fit in this regard and can also boost communications with customers.

How can you Automate Collections and Cash Flow?

Hylobiz is a fintech bridging financial services and unlocking your path to steady business growth.  

It is engineered to provide a complete tech stack for instant payment collections, improved cash flow, and efficient business process management. The platform can support any business model in UAE and across the globe.  

Plug-and-play APIs on Hylobiz can streamline business processes and collections. The platform is end-to-end automated and enables click here to know more.

Payment link-based digital collections from purchasers  

Rent and apartment maintenance collection  

Payment collections are within due dates with automated reminders sent by manufacturers/wholesalers/distributors.

A Glimpse of the Automated Collection Process on Hylobiz

Proven Methods to Improve Payment Collections

Instant payment collections

  • Track transactions with the collections dashboard.
  • Send out reminders and static/dynamic payment links over.
  • SMS/WhatsApp/Email/ Facebook/Instagram/other social channels to get paid instantly
  • Collect payments through net banking/ Debit/Credit cards/cash/cheque

Quick and flexible invoice exchange

  • Connect existing ERP with Hylobiz in easy steps to auto-sync invoices.
  • Create digital invoices with professional templates.
  • Generate tax Invoices.
  • Share invoices via multiple communication channels.

Easy implementation and real-time reconciliation

  • Setup easily in a few clicks.
  • Avail of Automated settlement benefits.
  • Access Automated reconciliation reports in real time

Accurate tracking

  • Track collection trends & overdue with a powerful dashboard and automated reports.
  • Get a 360-degree overview of business cash flow.

The platform is safe and secured, ensures multiple-level encryption to make your data safe, and simplifies audit trails and field collections. You can get rid of manual processes and can say goodbye to nightmares related to errors and disputes.

Benefits Unlocked with Payment Collection Automation Include
  • Faster collections.
  • Improved business relationships. 
  • 360-degree cash flow visibility.
  • Efficient use of time and effort.

Your account receivables, collections, and cash flow need to be in expert hands. Think smart and automate with Hylobiz now. The platform offers ‘round-the-clock’ services.

Book Demo to know how Hylobiz can support your business.

Frequently Asked Questions

What is payment collections?

Payment collection is the process in which fund is transferred from the customer’s account to the seller’s/ service provider’s account in the settlement of invoices for goods/ services sold.

Why is payment collection important?

Payment collection of unpaid bills is important for keeping revenue rolling and for maintaining healthy cash flow in the business. If payment is delayed a business suffers from a shortage of liquid funds that affects its operations and growth.

What are the basic steps in the payment collection process?

Step 1: Take stock of the financial situation by tracking the paid and unpaid bills in real time 
Step 2: Issuing reminders through calls, emails etc to the client 
Step 3: Monitor payments  
Step 4: Sometimes the help of a collection agency can ensure retrieval on time 
Payment collection automation with Fintech can ensure hassle-free payment collections within the due date and would not require hiring a collection agency.

How to improve payment collections?

Share an invoice with the client immediately after a purchase is made 
Track payments  
Remind your customers with professional reminders 
Generate and keep track of ageing report 
Reconcile the payments 
Offer easy payment collection options and flexible payment terms 

How to automate a payment collection system? 

The best way to improve payment collection of a B2B business is to automate collection with an automation solution like Hylobiz. With Hylobiz you can create invoices with easy templates, share invoices with clients via multiple communication channels, track unpaid bills, send payment links via email/sms/WhatsApp, remind your clients with automated professional reminders at your set frequency, collect payment via multiple payment modes 

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