Sales Representatives Should Not Be Incharge Of Collecting Accounts Receivable

By Danny Batler

Outstanding accounts receivables are a common issue within the cannabis industry. While there are several options readily available for companies to utilize when negotiating a settlement, there is one option companies should be wary of. Companies should not use their sales team when collecting on past due invoices. Doing so puts themselves at risk of negatively affecting their brand, image and cost of sales, which then places their business at a disadvantage. 

Role of Sales Department

In an organization, the primary objective of any sales team is to acquire new business. Salespeople serve as the company's public face to any potential customers. It's critical that these talented employees are both approachable and knowledgeable. A well-rounded salesman increases the likelihood that a prospective customer will be attracted to the business's offerings. In addition to customer acquisition, they also need to maintain customer relationships. 

Equally crucial to customer acquisition is customer retention. It is vital for a sales team to stay in touch with existing clients to learn more about their objectives. Checking in on the client even if they have no immediate needs, demonstrates that you value the existing relationship. If you are bringing in new customers and maintaining current clients, your business is more likely to expand rapidly. Now that the role of a sales team is understood, it is important to understand why they should not be spending time collecting on past due invoices. 

Sales Team is NOT Responsible for Past Due Invoice

As given in their title, sales are the sales team's first priority. But one task that they frequently work on is collecting accounts receivable from their clients. For many reasons, this should never happen. First, salespeople should devote their entire attention to attracting and maintaining customers. They are squandering time that could be used to grow the business if they are busy hunting down unpaid invoices. Not only does this negatively affect the efficiency of the company, but it also undermines the salespersons relationship with their customer. 

When it comes down to business, the sales representative is intended to be the client's best friend. If a customer owes you money, you shouldn't put the entire business relationship in jeopardy. Instead, keep your approachable and amiable tone as others try to collect payment. By doing this, it enables a stable relationship promoting favorable thoughts of the business even after the debt is paid. The image of your business is equally, if not more, crucial than collecting on debt. There are a few strategies for collecting without destroying client relationships.

Who Should Collect Debt

To collect debt, most businesses employ one of two strategies. Businesses usually have an accounts receivable staff to manage current receivables and maintain healthy cash flow. They are accountable for finding unpaid invoices and ensuring that they are paid. This approach works well for some. Many debtors, though, will keep eluding requests for payment.

Outsourcing debt collection efforts is an alternative strategy that is significantly more effective. CannaBIZ Collects is the first and leading cannabis collection agency. Our primary focus is collecting past due invoices for the cannabis industry. We have assisted over 600 cannabis companies in collecting more than eight million dollars of past due debt. For more credit and collection tips, visit cannabizcollects.com