Are customers slow in paying you or not paying at all? Here are some ways to collect more of what is owed to you.
-A collection phone call is 10 times more productive than another billing statement.
-Call frequently. Calling once or twice a week is not harassment and is far more effective than monthly calls or invoices.
-When you call, always ask for payment in full, sent today. If you have to negotiate, it's best to start from the strongest position.
-If your customer is vague and offers to send "a payment" or "something on the account," tell the customer, "That's great, but we need to have a specific amount on a specific date." Then, ask for half now and the balance in two weeks.
-If you agree to accept multiple payments, ask for postdated checks to be sent now, along with the first check.
-Offer a discount for PIF--payment in full--today.
-When you get a promise to pay, confirm the amount and when it will be sent. Tell the customer you will mark it on the calendar three days from that date to let him or her know you'll be looking for the check.
-If you get no cooperation, say that you hate to turn the account over to collections, but you may have no choice. That tends to focus your debtor's mind, more clearly.
--by Leonard Sklar, collections consultant and author of The Check is Not in the Mail (Baroque, 1991)
