Do You Feel Like A Slave To Late Payers Case Study

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Do You Feel Like a Slave to Late Payers? One of the most challenging things about owning a small business is getting paid on time. Getting paid is crucial to staying in business, therefore, it’s important to find ways to ensure you get paid on time, every time. Debt collection in antiquity Back in ancient Babylon, the rights of the debtor were somewhat protected, but so were the rights of the creditor. Creditors weren’t allowed to charge interest like today, but they could require work in lieu of payment, which meant working as a slave for the creditor until the debt was paid. During Colonial America, debtors were thrown in prison for failure to pay debts where many starved or froze to death. Debt collection in today’s climate Today, the …show more content…

• Regular Reminders – Sometimes people get busy and forget to pay. One invoice is seldom enough these days due to hectic and distracted lifestyles. Send invoices on the same day every month and then follow up with an end-of-the-month statement as a courtesy. This is a gentle reminder to your clients to pay you. • Reality Check – Don’t get caught up in the issues of the non-paying client. While there’s nothing wrong with identifying the problem of the late payer, because you should, but don’t be fooled into thinking you can afford to keep that client. Non-paying clients are silent killers to small businesses. You can’t keep servicing them if they can’t or won’t pay. • Remain Calm – When collecting a debt remain calm on the phone and consider via email or post. Never intimidate or go ballistic on your clients. Your sympathetic tone and understanding will go a lot further than being intimidating to your clients. You’re more likely to get paid if you present yourself in a good light and avoid intimidation tactics that only cause more problems. Your late-paying client could just avoid paying you out of spite regardless of the consequences. • Fast Follow-up – As soon as a client’s invoice is overdue, give them a polite reminder call and ask when they play to make payment. Always work to get a commitment to a date for payment from them. This is how you chase money down as soon as client’s account becomes late. • Last Resort – As a last resort, use a

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