An Ounce of Prevention: A Great Debt Collection Technique

by Sharon Brown
(Fishkill, NY USA)

I am a partner in a property maintenance company. We maintain, repair, and supervise large products on properties when the owners/landlords are either too distant or too busy to manage for themselves.

Many of our clients are out of state and we frequently sign contracts and manage an entire business relationship without ever laying eyes on our clients. That makes it much easier for a client to renege on payment.

As a standard part of our pre-contract conversations we discuss payment options, what we do if a renter stops paying rent, and how we handle contractors who do not complete their obligations. This conversation is a segue into our need to be paid on time and how we handle debt collection.

Once we stop being paid, we stop all work. We are willing to defer contacting credit bureaus as long as we are receiving any payment toward your debt. We will take even $25 a month if that is all that the client can afford.

We do not encourage this by any means, but when clients know they will not get a nasty-gram or insult when we call, they are more apt to send whatever they can and to answer the phone when we call.

Most people want to pay their bills. If you remove their shame and anxiety and they will work with you.