Point Credit Solutions - Blog #freePoint Credit Solutions - Blog #freehttps://www.pointcreditsolutions.com/blogs/tag/freeFri, 24 Apr 2026 20:09:13 -0700http://zoho.com/sites/<![CDATA[How to Avoid Customer Alienation]]>https://www.pointcreditsolutions.com/blogs/post/how-to-avoid-customer-alienation

How to Avoid Customer Alienation

Customer loyalty is something hard to get, and easy to lose. At Point Credit Solutions, we value a client and debtors relationship. On behalf of our clients, we do everything we can to get to the bottom of the debtors payment issue. A huge mistake businesses make is poorly solving problems with delinquent customers. This results in not receiving any payment at all, and losing that crucial customer relationship. Let's discuss a few tips we use to preserve relationships with customers...

                                                                                                                                

1. Dive into why they haven't made the payment

                                                                                                                                

Sometimes, customers just need a reminder. Maybe they aren't very organized, thought their spouse paid, or were unhappy with the service. At this point, you must get in contact with the debtor. If you can get them on the phone, it is essential to remain friendly and understanding. After all, we are all human and mistakes do happen. If there is an honest discrepancy in the product or service that was preformed, it is crucial to get proof of it. Ask for a receipt, photos, or offer a credit/discount towards their next purchase with your company.

                                                                                                                                

2. Avoid harsh tactics

                                                                                                                                

The friendlier you are, the greater success you're going to have collecting the amount owed. Chances are, if they owe you money, they probably owe a handful of other people money too. Many traditional collection agencies use dishonest threats to get people to pay leading to customer alienation. We believe that people want to pay their bills, and we help them do that by employing techniques designed to educate.

3. Make it easy for them to pay

                                                                                                                                

Many debtors work long hours, moved to another state, are going through financial hardship or can only pay minimal ways. We have found great success in having a 'make a payment' link on our website which allows people to pay from anywhere, and at any time. We also allow debtors to enroll in a custom payment plan if they are going through financial hardships which could be due to a job loss or medical emergency.


4. Help them solve their problems


Sometimes people feel overwhelmed with bills or other life challenges. Becoming a priority can happen by just offering a little bit of empathy towards the customer, rather than force. By helping them see that you are human and understand, you automatically become the priority. When people have to choose between several past due bills that they need to pay and someone asks them with an empathetic and understanding voice, or brings payment solutions, the customer generally feel a sense of relief in solving the past due account.


If you would like our help managing past due and delinquent accounts receivable, click the "Get Started Now" button below to have a consultant explain how we recover accounts at a rate more than times the national average! We can help!


Bella Debo

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]]>Thu, 22 Oct 2020 01:04:57 -0500<![CDATA[How to Calculate Days Sales Outstanding]]>https://www.pointcreditsolutions.com/blogs/post/how-to-calculate-days-sales-outstanding

How to Calculate Days Sales Outstanding

Days Sales Outstanding (DSO) is the average number of days that receivables remainoutstandingbefore they are collected. It is used to determine the effectiveness of a company's credit and collection efforts in allowing credit to customers, as well as its ability to collect from them.


To calculate your days sales outstanding, you’ll need to pull information from an aged accounts receivable report or a balance sheet. Once this information has been gathered, you’re ready to calculate your DSO.


1. Determine the period to cover

It’s up to you to determine the period you want to cover when calculating DSO. Smaller businesses may find it more useful to calculate DSO quarterly, although businesses that frequently sell on credit should do a DSO calculation monthly.


2. Calculate beginning accounts receivable total for the period

This information can be obtained from a balance sheet that is run as of the first date of the period you’ll be examining. For instance, if you wish to calculate DSO for the first quarter of 2020, you’d run a balance sheet as of Jan. 1, 2020, to locate your beginning accounts receivable balance.


3. Calculate ending accounts receivable total for the period

Obtaining your ending accounts receivable balance is done the same way, only this time you’ll run a balance sheet report as of March 31, 2020.


4. Determine average accounts receivable for the period

For this calculation, just take your beginning accounts receivable balance and your ending accounts receivable balance for the time frame you selected.

For example, if your Jan. 1, 2020, accounts receivable balance was $27,000 and your ending accounts receivable balance was $31,000, you can calculate your average balance like this:  ($27,000 + $31,000) ÷ 2 = $29,000

Now you know that $29,000 was your average accounts receivable balance for the first quarter.


5. Calculate total credit sales for the period

This calculation can get a bit tricky if you don’t keep track of cash sales separately. If you do, all you need to do is locate your total sales for the period. Be sure and subtract any returns or adjustments, and if you don’t track cash sales automatically, you’ll have to subtract those as well.

For example, if you had credit sales of $57,000 for the first quarter of 2020, with returns totaling $1,500, your total sales for the period would be $55,500.

6. Determine the number of days in the specified period

If you’re calculating DSO for the month, you use the number of days in the month. In our example, we’re calculating DSO for the quarter, so we’ll need to add together the number of days in each month.

  • January: 31 days
  • February: 29 days (leap year)
  • March: 31 days

So, the total days for the first quarter would be 91.


7. Calculate DSO

With all the information gathered, you’re now ready to calculate days sales outstanding using the DSO formula.

($29,000 average accounts receivable ÷ $55,500 credit sales) x 91 days = 48 days


You now know that it takes your business 48 days on average to collect payment on an invoice. But what do those results mean?

In general terms, a DSO of less than 45 is considered good, but this can vary between industries. For example, a manufacturer selling heavy equipment is more likely to have a higher DSO than a service business. If your DSO comes back fairly high, there are ways you can lower it.

See our article:  Five Ways to Get Paid Faster


           According to CFO.com, the median DSO is 38 days. This can vary by industry.


If your DSO is out of line request a Free Accounts Receivable Analysis! We have helps many businesses improve their cash flow!
 

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]]>Tue, 20 Oct 2020 00:01:06 -0500<![CDATA[Numerous Inquiries About One of Your Clients Can Be A Warning Sign of Potential Credit Problems!]]>https://www.pointcreditsolutions.com/blogs/post/numerous-inquiries-about-one-of-your-clients-can-be-a-warning-sign-of-potential-credit-problems

Numerous Inquiries About One of Your Clients Can Be A Warning Sign of Potential Credit Problems!

As a business, it is important to understand your clients. Weather it is a first timer - or a 'regular' one must do their research. To ensure your product and/or service will be paid for, first determine the customers ability and likelihood of settling a debt within agreed credit terms. 


If a client has a history of overdue debts, bankruptcies, disputes or longer repayment periods, these are a huge red flag and warning sign of potential credit problems. Disputes need to be dealt with right away, hear the client out but be sure to keep an eye out for foul play. If the client starts suddenly complaining about your services, find out if there is a real problem, because alternative motives may be in effect. More often than not, customers pick fights when they know they are in financial trouble, hoping to buy some time before paying you.

 

Be especially watchful and selective before extending credits to clients. If you have a client that repeatedly makes excuses and asks to extend payment deadlines, it is best to stop working with this client immediately. Remember, cash flow is king to any business and receiving on time payments is a crucial part to financial success.


Bella Debo

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]]>Fri, 16 Oct 2020 13:30:21 -0500<![CDATA[Five Ways to Get Paid Faster!]]>https://www.pointcreditsolutions.com/blogs/post/five-ways-to-get-paid-faster

Cash flow is the life blood of any business. If your business extends credit to your customers here are five suggestions that will help you get paid faster every month!
 

1. Ask for Payment in Advance
You might be surprised by the number of customers you have that are willing to pay in advance if you just ask them for payment. Many businesses and most consumers are used to paying at the time of service and don't need to tie up your cash flow. By asking them to pay at the time of booking, time of service, or even offer prepaid service packages, you can dramatically increase your cash flow immediately.

2. Invoice Immediately
Technology today allows you to invoice immediately in almost every situation. People will never pay at the time of service if they don't know how much is owed. By handing them an invoice immediately or sending it by email, you can drastically speed up the payment cycle.

3. Shorten Your Terms
Most customers don't need 30 days to pay a bill. in many cases ten or fifteen days might be plenty of time. Try offering certain customers shorter payment terms and you will see a significant acceleration in accounts paid.

4. Offer Discounts
In many business to business relationships, offering a 2% to 5% discount for early payment is very common. Common terms are verbalized as 2/10/Net 30, or 1/15/Net 30. What this means (2/10/Net 30) is that your customer can take a 2% discount on the entire order if they pay it within ten days. Other wise the account is due in full at 30 days. For larger companies this discount is taken when offered and this will put cash in your bank two or more weeks faster!

5. Make it Easy For Your Customers to Pay
The easier it is to make payment, the faster your customers will pay. Traditional customers will pay by check through the mail. Offering to accept credit cards on delivery, or on your website is a major convenience for many people. A simple link on your web site to accept credit cards instantly extends your business hours from 9-5 M-F, to 24-hours a day seven days a week! Your customers can now pay you at their convenience, even on the weekend or 2:00 in the morning!

If you would like our free eBook "101 Credit and Collection Tips" you can download it at the link below. Or if you have accounts receivable that have gone beyond your payment terms and you would like advice on how to get them collected, we are happy to help! Call us anytime at

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]]>Mon, 12 Oct 2020 15:40:03 -0500<![CDATA[Point Credit Solutions purchases FreeAccountsReceivableAnalysis.com]]>https://www.pointcreditsolutions.com/blogs/post/Point-Credit-Solutions-purchases-FreeAccountsReceivableAnalysis.com

FreeAccountsReceivableAnalysis.com is Under Development

The acquisition of FreeAccountsReceivable.com will allow Point Credit Solutions to offer a free tool to accountants, and business owners. This tool will give vital information regarding current credit policies,  current aging of accounts, and compare to industry standards and best practices. The user will be able to submit some basic accounting information securely and get some very valuable data results instantly.

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