Debt Collection Techniques That Work With Collecting From Problem Clients

by Marla
(Cleveland, Ohio)

Being in business for yourself has numerous perks but also has a unique problem- collections! In our line of business which is embroidery and embroidery digitizing we are fortunate that 95% of our clients pay in full within 30 days and even if they don't the most we are usually out is out time.

We have very little overhead. Unfortunately, there are those few clients which do not take financial responsibility for their debts and we must take action to receive payment. The following are debt collection techniques we have found to be most successful:

1. Send, via email, a reminder and include another copy of the invoice.

2. Make a follow-up phone call requesting payment.

3. Let them know no further services will be available to them unless payment is received.

4. If credit card payment has not been offered to them make that option available to them.

5. Give them a specific date payment must be received and let them know if it has not been received it will be turned over to collections and this will affect their credit rating with other vendors.

6. As a last resort contact an attorney and proceed with legal action.

Fortunately, in our over 12 years in business we have only had to resort to this tactic once. Collections is never fun, but is a necessary component to any successful business.