Creditors’ Rights 44
Q: I have sent several bills to a customer and have not heard anything back. The customer’s late fees are adding up and I’m becoming concerned that I am not going to get paid. How do I start the collection process?
A: Collecting is not the same as billing. Consider the Three P’s of Collecting. It’s part Policy, part Psychology and part Persistence. Collecting is more art than science. A company should act quickly after the due date and increase the collection efforts during the first 90 days after the due date. Add that to the typical 30-day grace period and the window is a mere 120 days – four short months from invoice. After that, consider placing the delinquent accounts with a collection professional.
*Learn more about credit policies and the Payment Gap with Bob Bernstein’s new book, Get P.A.I.D.TM A Guide to Getting Paid Faster (and What to Do if You Don’t!) at www.getpaidsystem.com