Debt Collecting Q & A – Issue #10

By Jim Finucan

Dear Jim –

My most important customer has always been very good about paying invoices on time. But the accountant at that company always gives me an excuse (too busy, being processed now, etc.). We keep waiting but the checks don't arrive. I have called the boss but sometimes he is out of town and can't be reached. The accountant is the person responsible for seeing that invoices are paid so how can I get her to issue checks on time?

Late payment problems always originate at the top. The account is only doing what she has been told to do: delay payment. You need to begin your collection calls right at the top – with the president or whoever is the head of the company. Be firm and clear: you need payment in full by whatever day or date and anything less is unacceptable. If the CEO acts as though he is unaware of the problem, politely let him know what the situation is and that you plan to deal directly with him – the decision maker. Bring him into the circle of accountability and don't let yourself be put off or handed over to someone else. Then call the accountant and tell her that you are in direct communication with the head of the company in making the overdue invoice a top priority.

Communication is the key. When he says "I have lots of work to do" You can say "so do I, and unfortunately that's why I'm calling. This bill is part of the work you need to do. It's being neglected and I want my money."

Make the call professional but not pleasant, so they won't want you to call again. People avoid uncomfortable situations yet that's what it takes to get through to them. Don't worry about putting stress on the business relationship; chances are good that it will improve it and their respect for you will increase.

Jim Finucan is a "top gun" bill collector who has been bringing in unpaid bucks for over a dozen years. He is the author of "Past Due – A Debt Collections Manual" http://www.tiare.com/pastdue.htm

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