The client or customer hasn’t paid on time and you’ve called or sent out one or more notices without any response. When do you “draw the line” and write off the charge(s) or send the balance to a collection agency? Don’t get caught up in the emotional aspects of this situation but, instead set up clear guidelines and procedures and then follow them closely. If you send out your invoices in a timely manner, follow up with a “friendly reminder” and then if necessary a phone call, you will alleviate many of the problems with most customers/clients. Your collections procedures need to be consistent and create an expectation that shows that you not only expect to be paid but, that you will take the necessary steps to receive payment.
Since I have a background in collections, I can tell you that Jan Fletcher, hits the bulls eye with her advice in “7 Ways to Sort a Slow Pay from a No Pay”. Click here to incorporate these 7 steps into your business and go from frustrated to “it’s all under control” for your collections.
Jan Fletcher, President of Dreamcatch Creative, reports on restaurant operations, the signage industry, and composite manufacturing. She also writes about technology in business and education, and is passionate about microenterprise.