YOU'VE HEARD THE EXPERTS SAY, "DON'T LET clients charge," "Reduce your accounts receivable," "Letting clients charge is
a bad idea." But accounts receivable isn't necessarily a problem. If you let clients charge and they pay their bills and the
service charge, you're not only making money—you're making money on your money. Isn't this what banks do? The biggest building
in your city is probably a bank building; I figure they must be doing something right.
Illustration by Alison Fulton
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In fact, you may be causing bigger problems by not allowing clients the opportunity to charge. How many times has your team
suggested a dental procedure, only to hear the client say, "I can't afford that care right now; I'll take care of it later
in the year." But the client doesn't usually schedule it later.
Instead, when he or she comes back the next year for the pet's annual physical exam, you find the pet has lost weight and
has severe periodontal disease, or worse yet, an abscessed tooth.
What if you could say, "I understand that you may not be able to pay for the service today. We do offer credit terms to our
valued clients. Let me ask our office manger to discuss the options available to you." This approach leads to better care.
Plus, you're saving clients money in the long run by addressing health issues before they become critical. And your practice
earns revenue. Of course, you need to be smart about when and to whom to extend this privilege. And you need a reliable system for following
through and making sure you get paid.
Consider an outside service
The first decision you need to make is whether you'll extend credit yourself or use an outside vendor. You can outsource this
service either to a company that serves only the veterinary industry or an out-of-industry vendor. Many local banks also will
work with you to set up a client-lending program.
First collection letter
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Using an outside service has advantages: You don't have to investigate a client's creditworthiness. You don't send the monthly
bills. You're paid immediately. And if the client fails the credit check, it isn't your practice that refused him or her,
but the outside service.
The downside of using an external service is the cost to the practice and the client. But in most cases you'll pay only a
little more than you would if the client used a credit card.
If you decide to offer credit internally, I recommend that you put one staff member in charge of this process—and make sure
you give that person the appropriate training. Many rules and regulations apply in the credit and collections world. So appoint
someone who's interested in doing this job and send him or her to high-quality continuing education courses. You'll find many
one- and two-day courses available.
Of course it's important to know whether the client is a good credit candidate. To help you decide, join your local credit
bureau. As a member, you can submit requests for credit reports—with clients' permission. These reports give you all the information
you need to decide whether the client meets your criteria for extending credit.
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