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You don’t have to hire clubs! 6 effective techniques to collect the money they owe you

June 15, 2020

The opinions of the employees of s You are personal.


A clear sign that the economy is not as strong as it should be is stories of battles by Collections They are increasing. For business owners, especially for companies whose basis is from Customers it’s pretty small, a couple Payments Converting the usual 30-day schedule to a slower 45-day schedule can mean the difference between Payroll and having to deal with an office full of disgruntled employees.

You don’t have to hire clubs! 6 effective techniques to collect the money they owe youYou don’t have to hire clubs! 6 effective techniques to collect the money they owe you

No company today can be considered immune to that company Delayed payment syndrome. With falling revenues and affected reserves, not all companies have the necessary cash cushion to survive a customer’s disappearance. When phone calls go unanswered and checks run out of money, it is easy and understandable to get angry.

In this situation, it is tempting to be inflexible in the face of arguments or excuses from criminal clients. For example: “Are you behind in your accounting because your mother is in the hospital? Pay me! Did a fire in the building where your office was destroyed destroy all of your files? Pay me! “

You also don’t have to go to the extreme to hire a few bat to collect the money they owe you. And it is not always necessary to resort to the help of a law firm. Experts agree that, when properly managed, billing and collection strategies can be an integral part of strengthening customer relationships, rather than destroying or complicating them.

In the past few months you have certainly experienced some of the following situations – or you will live for the rest of the year – in which the constant is: Customers who for some reason – invalid or not – have delayed their payments. It is important that you know how to solve each of these tests. It’s worth it, because the future of your company depends on it.

Problem 1. The invoice is 25 days late and now your customer is requesting a restructuring of his payment schedule

Collection specialists advise, if you can avoid this, not to become your customer’s bank. A better solution is to present alternative options, e.g. B. Credit card payment (personal or business).

“If you have a $ 5,000 or $ 10,000 money order and the debtor doesn’t want to cover the amount with your credit card, you’re in trouble,” said Steve Wideman, executive vice president of debt collection services at Credit Control LLC. “This is a sign that you definitely cannot top up because if that person is unwilling to charge their own card, it is a fact that they are not certain that they will have money to pay.”

If you agree to rate restructuring, first ask your customer what caused the delay and listen carefully to the answer. “This gives you clues about their situation and how it will ultimately affect you,” said Steve Harms – co-author of the Guide to Loans and Idiots Collections – and adds, “If the debtor is really facing serious problems, probably yes you can set up an installment plan and set the first payment for today. “Insisting on” today “is the key,” says the expert, “it’s hard to know if the client is lying.”

Problem number 2. The customer apologizes on the grounds that personal matters have prevented him from staying up to date

We all need to address serious issues that can distract our attention from the way the company is run. In this situation, be careful when using the phrase “business is business,” advises Harms. Customer relationships are generally based on some sense of personal connection, and it is important to recognize this without the relationship outweighing the need to receive your payment.

The specialist also ensures that “we need to find a way to prioritize payment even if the customer has personal issues.” To this end, he suggests creating a payment request that reflects your concern, but at the same time recommends that the customer not aggravate their problems in order to prioritize the payment, even if the customer has personal problems. “

To this end, he suggests preparing a payment request that reflects your concerns, but at the same time recommends that the customer not aggravate their personal affairs by creating credit and business problems.

Alan Hauff, director of the St. Louis Center for Technology and Small Business Development at the University of Missouri, suggests that small business owners not impress their customers by telling them that the payment date will be delayed by 30 days and there will be no problems. “Learn to turn the conversation around – especially if they give you all kinds of excuses – and get it on the path to the main topic, which is to convince them that it’s in their best interest to keep the relationship going.”

Problem number 3. The customer is a friend who is trying to use their personal relationship with you to extend the payment period

According to Harms, you can somewhat refute this pretext by saying to a friend, “Since we are friends, I want to tell you that your primary concern should be to make your payments on time and in an appropriate manner. You do not want to find out about this matter. You don’t want a stain on your credit card. You don’t want us to have a conflict in case you need an urgent order and then I’ll tell you I can’t send it to you unless I get a check of what you owe me first thing in the morning. “You have to be assertive. “And if friendship deteriorates a bit, you have an obligation to your company,” he adds.

Problem number 4. The client does not answer your calls, does not answer voice messages or does not answer your emails

In this case, the list of emergency measures should include the following.

• Check your files to see if you have had payment problems with this customer in the past.
• Check on the Internet whether your company’s page is still active and check whether it has been updated.
• Confirm that the company still exists, that it still exists physically, that it works, and that it is profitable.
• Send a registered letter to confirm whether the customer continues to receive correspondence.
• Ask if the other providers of this person are also faced with late payments.
• Examine your customer’s credit cardi for additional information that you can use to contact them: cell phone or home phone; Address or personal email address; even information from Facebook or Twitter.

Problem number 5. The first check “was sent” but never came. And the same thing happened with the check that he used to return the first one

Don’t let me “send” another check. Let the customer know that you are sending a trustworthy person to his office this afternoon to collect the money, and insist that the payments be made by certified check.

To be honest, at this point I think he’s a liar. And if someone has lost credibility for you, you have to put an end to it, ”says Harms. Nevertheless, he suggests that you keep your temper under control: “Don’t let the debtor bring out your worst part. If you get angry and hang up, you are lost. “

Wideman agrees that while losing control is not productive, you need to call your customer and let them know that they have not met their commitments. It doesn’t matter if it breaks the bond between the two. “If they don’t pay you, they’re not good customers,” he says.

Problem number 6. Bad checks

You already know that a check that is debited or issued from a fully booked account can change your own payment obligations. What you may not know is that your bank has the right to cancel your account and freeze your money if you deposit a fraudulent check from a customer. If you receive a payment in a form you suspect, protect your company and ask your bank for advice on how to deal with it before deciding to make a deposit.

In this situation, Wideman suggests “billing” new customers before the date of the first payment. The excuse? Make sure the invoice is clear and there are no problems with the product or delivery. In this way you make it clear that you have done your part of the business and therefore expect your payment to be on time.

Train your customers to pay on the set date. To achieve this goal, do not be afraid to make the call to check if everything is OK. “You provided the service. You have to close the sale. The sale ends when the money is deposited into your account,” Harms concludes.