Your business has rolled out a slew of great products and a sound marketing strategy. Sales are piling up, which is always a good thing. However, it seems that there are a few customers who are, to put it mildly, slow to pay. What’s a hard working business owner like you to do? For openers, you should be relentless by sending their bills and past due notices promptly. However, it doesn’t stop there. Here are additional tips to help you collect your debts.
Never threaten the ones that owe.
Harassing your debtors is never a good idea. If you call them around the clock, they’ll never pay their bills. One phone call a day is sufficient.
Getting personal never works.
When you call, keep the conversation direct and to the point. Maintain your composure. Do not get personal or say anything that belittles the debtor.
What can they pay?
Sometimes a customer may have difficulty paying their bills due to financial issues. Ask what amount they can afford to pay and try to work out a special payment plan or agreement to resolve the issue.
Send them letters.
Phone calls alone aren’t enough. You should also send letters with each one more serious than the previous. Record and document all the phone calls and letters because you may need these papers if the matter escalates to a credit agency or court case.
Collections agencies can do that too.
You’re a busy business owner or manager and may not have the time to call or send letters. To save time, you can hire a collection agency to write and mail these letters. Since the agency has experience in this area, you may realize better results.
Offering a big discount can solve the problem.
When a customer hasn’t paid in more than four months or so, it may be wise to offer a big discount on their bill. After all, it’s better to receive some money than nothing at all.
Your last resort: a collections agency.
When you’ve tried everything and still haven’t been paid on your outstanding invoices, the only solution is to contact a collections agency. The monies the agency collects does come with a price. Usually they will keep 50% of what they recover from your past due accounts.
