Small Business Debt Collection Strategies

by Aaron Mednik
(St Louis)

Like most small business in this down economy, we have had to adjust our debt collection strategies. One of the most effective ways to ensure timely payments from customers has been to review credit applications more closely and try and head off future problem at the beginning.

For existing customers, we are calling them for payment due closer to their 30 day invoice period. We are also getting verbal and written commitments from customers.

This includes having them fax a copy of the check to be mailed and following up a day ahead of when they say it will be mailed. By calling them a day ahead, it serves as a reminder for them to put the payment in the mail.