Who owes you money? Think about it… Insurance companies, clients, suppliers etc. I’m always amazed at how lenient some people are when it comes to getting money from people for services they have already provided. In my opinion if you receive a service you should pay for it. Some health care practitioner I speak to have insurance companies or clients who owe them €1000s for services provided 12 months previously. Now before you say “insurance companies just don’t pay up front” hear me out. Here are some tips to get your money faster and keep your cash flow quicker.
- Get organised: You should have a system you can check who owes you money and from when. Then you can simply send them reminders via email to pay up with one click of a button. I recommend Cliniko for this use.
- Be transparent: Make your clients aware of your policy when it comes to payment before they engage in your services. You are not a bank, so don’t offer credit.
- If you have an admin team, get them organised to chase up outstanding debt. The value of your service reduces with time, so people will be less likely to pay for a treatment they had 6 months ago. If you have some people like this and they are not insurance cases it may be more cost effective to write the debt off, it could cost more in staff resources to chase it.
- Clear signage – “all services must be paid for on the day of treatment”. Also put your bank details on your invoices.
- Talk to solicitors and insurance companies about payment.
- Sell your debt, some companies offer the service to buy your debt, if clients have outstanding of €500 some companies may give you €400 for it.
You may think I’m being harsh but you work hard and deserve to be paid correctly and on time. If you’re not taking a steady wage from your business or struggling to pay your lease then maybe it’s time to review how you do business. If you offer an upfront and honest services then I find people are more than happy to deal with you. To find out how PracticeNav can improve your cash flow take our Online Audit which gives you instant results. This can help identify your goals and systematise your debt collection aspect of business. Contact PracticeNav via email email@example.com or take our Free business audit to find how we can help.