Collection Tips

With the increase use of credit/debit cards for payment on orders, collections is the not the issue it was five to ten years ago.  But there are still times when I find I need to use good collection procedures.

Interestingly, I had two vendors this last month that were having trouble getting paid on their invoices.  In one case, the vendor was very upset, had made several calls to the store and was ready to shoot me and the store owner!!

Fortunately, I tend to be very good at collections!  I guess this is because I, too, Collection Tipshave experienced the unfortunately situation where I could not pay my bills on time.  But, also, successful collections requires a bit of patience, understanding, and open-mindedness.

When the economy dropped in 2008, lots of folks were in financial trouble.  In most cases, using compassion worked with these delinquent payers and (who were wonderful for paying on time before this) got me the checks.  One store owner even told me that she was paying me first because I had been so nice to her about it.

First lesson in collection late payments:  DON’T ASSUME THE STORE BUYER IS TRYING TO RIP YOU OFF!  Trying to collect with a negative attitude is always the kiss of death!!  Most late payers often have a good reason for not making payment, which brings us to lesson #2:

IF A STORE HAs NOT PAID THEIR INVOICE, OFTEN IT IS BECAUSE THEY HAVE LOST THE INVOICE, NEVER RECEIVED THE INVOICE OR MISFILED THE INVOICE.  Easiest solution is to contact the store and ask if they need a copy of the invoice.  In about 75% of the time, this one contact and action will get you paid.

Like I said in the beginning, I have a set system I follow when collecting late payments.  For a copy of this report, please click the link below:

Late Payments and Collections

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