Debt
Collection: 5 Steps You
Can Take to Get Paid!
There
are always some companies that have past due invoices and can’t seem to
get them paid. They might be quietly waiting to get paid not wanting to
contact the client for fear of appearing “desperate”. Sometimes a big part
of the problem is no response, it is bad enough when you are not getting
paid, but when orders keep coming in and you are not getting any
acknowledgement to your collection efforts, you just can’t keep processing
orders.
There
are steps you can take to get paid on those past due invoices and keep new
invoices current.
Step #1
Gather together all the past due invoices, and stamp them PAST DUE.
Step #2
If you have an email address or phone number with a contact name for your
client, email them or call them and give them the information on the past
due invoices and let them know their account is on hold.
Step #3
Mail the invoices to your client with return receipt requested or send
them in a flat rate Priority Mail envelope with delivery confirmation.
Step #4
Send a letter with these invoices stating the age, invoice numbers, their
PO#, your account #, total amount due, and any other pertinent
information.
Step #5
Tell them their account is on hold and you will not be shipping any more
products or providing any services to them until these invoices are paid.
You can include a self addressed envelope and state that you have enclosed
an envelope for them to send their check. Give them a date, to have this
paid to you.
Once
they have received the package, email or call them. Ask them what they are
doing with the invoices. Ask them questions such as:
Do they
have to be approved by someone else? If they have to be approved, who has
to approve them and when will they give them to that person? Get that
person’s direct number if possible. Find out if that person signs the
checks. Are there any discrepancies with the invoices? When will the check
be cut? When can you call back for the check number?
Once all
the past due balances are cleared up, you need to think about future
invoices. Do you want to extend credit again or do you want to have
pre-payment or payment at the time of the order. Whatever you decide put
it in writing. If you can both sign the agreement, that is even better.
Remember, having a credit policy in place tells people you mean business.
Michelle Dunn has over 17 years experience in Credit and Debt collection.
She is the founder and president of Never Dunn Publishing, LLC, is a
writer, publisher, consultant and the Editorial Advisor for Eli Financial
Debt Collection Compliance Alert Newsletter.
www.credit-and-collections.com &
www.michelledunn.com
