01.10.2018 | Posted by Jasmine

Getting Your Invoice to the Top of the ‘To Be Paid’ Pile in January!


A new year, a new beginning…a clean slate? Most retailers are hoping for just that as we enter January in full swing.


Traditionally, we see the last quarter during the holiday season as the time of year that retailers make their profits. For many retailers, the first 9 months or so of the year are breakeven or show losses. So, most retailers are very dependent on the holiday season to make their year.


During the holiday season our collectors often see a slowdown and we find that most of our collectors have trouble reaching customers. Whether customers are on vacation over the holiday or busy on the floor with the holiday crowd making sales, it gets more difficult to get calls back or reach anyone for that matter during this time. Retailers are typically making a big push and are holding on to the hope that December sales will save their year because if it’s not a good season, they could close up.


The beginning of any year in apparel is challenging. Generally, this is the period when the highest percentage of retailers go out of business which is why we stress that as soon as the new year is in full swing, it is imperative to reach out to your customers in a consistent manner. Most likely sales did come through during the holiday season and most retailers will start getting payments out on past due bills.


That’s why here at Axim we stress that it’s very important to get on past dues right away and stay on top of them closely in January. Your job is to be the squeaky wheel and get your invoice to the top of the “to be paid” pile. We recommend you stay closer to the customers that are past due by shortening the lag time between contact attempts with them and push a bit more firmly for payment.  By being proactive and staying on top of calls closely in January, we would hope you would reach your goal of getting your invoice to the top of the list for payment.



Here are a few quick tips to help you get to the top of the to be paid pile in January:


  1. Be consistent in your follow up. We recommend calling every 2-3 business days.
  2. If you aren’t getting a call back from AP, try reaching out to the buyer, someone else in AP or a manager.
  3. If there is still a delay in payment, speak with the customer to get a better feel of the issue and be prepared to discuss payment options.
  4. Don’t be afraid to raise the red flag earlier on than normal if a customer still cannot commit to payment during January. You may need to get a demand letter out sooner than normal if an account is severely past due already with a high dollar amount and not able to commit to any payment. Use your best judgment!