If your business invoices customers, you have likely faced cash flow challenges due to slow (or non) payment. Slow-paying customers are frustrating because they hinder your ability to meet expectations, replenish inventory and pay your team.

Over 26 years running a cybersecurity business, my company has invoiced over $100 million in services and products. When I exited in 2022, we had achieved a 98.7% collection rate. The only unpaid invoices belonged to customers who went out of business before we could collect.

This success was not due to software, charm or legal threats. It came from consistently following a structured collections process. Whether your invoices are $10 or $10 million, a disciplined approach is essential to ensuring continuous cash flow.

Related: Late Payments Are Crippling Small Businesses. Use These Strategies to Collect Your Money Sooner.

Effective collections hinge on the consistent and respectful application of pressure. This approach positions your company as financially credible and communicates clearly that non-payment has consequences. Banks and credit card companies employ similar techniques successfully.

Demanding payment can be uncomfortable if customer relationships are close. It requires shifting interactions from social to transactional, which can be awkward for customers, especially if they are not directly responsible for payment. Thus, it is critical to keep collections and customer service separate.

The first step in building a formal collections process is to assign a bookkeeper, controller, accountant or similar back-office staff to manage all collections tasks — issuing invoices, communicating payment details, and sending collection notices. Avoid having........

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