When push comes to shove and your account customer still hasn't paid or responded, it's time to get "heavier" - more assertive. Here are a few suggestions of wording and approaches you can use.
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Our client, the creditor, is an accounting firm. * All "standard" reminders had been ignored. * Phone promises to pay not kept. * Even a final "Letter of Demand" went unheeded. The accountant who knew the client advised "He's got a serious cash-flow problem”. We suggested we offer them a payment plan that the debtor [...]
Small unpaid account. Long overdue. You've emailed, written snail-mail letters, phoned and left messages to chase up payment. All to no avail. Complete silence and lack of response. What now? The two main options people normally take are ... 1: Give it to a Debt Collector or Lawyer. But, if the debt IS a small [...]
What would YOU do? The Creditor - An Accounting Firm who provide accounting and taxation advice. The work done can be disputed. Often is - when a debtor can't pay their fees - even when the work done is excellent. The Debtor - They owe $10,000. Want to 'pay it off" at $1,500 a month. [...]
Whenever all of your 'collection' attempts (emails, letters, phone & text messages .. ) have been ignored, sometimes, the less said, the better. This almost always gets a response ... but only IF you follow all of the 6 steps below, ALL of them. It's simple psychology. Why this works. * It's a slap in the face. It's [...]
The client wasn't paying. * Messages left by the junior accounts person were being ignored. * What to do? * Important client. * Client for many years. * Don't want to get too "heavy". At 1.58pm we sent an email (on top of previous 'follow up' emails) ... At 2.07pm, 9 minutes later, we received a [...]
1: Send an email like this. Dear Ms Bloggs,Please contact me by 2.00pm, Thursday, 08 July as I’m obliged to send you a formal Letter of Demand by the end of this week according to the firms Credit Policy. If I do not hear from you by then, I will be left with no alternative. [...]
Use time in your favour and put pressure on the debtor! Timing is everything when chasing slow payers. So, use time and a basic psychological principle to your advantage and send your reminder (or "heavy" collection notice) so that it gets to the debtor on a Friday afternoon. Late. To explain ... If you're writing [...]
This is the the second step of an ongoing, "live" Case Study. Click here to go to go to the beginning of this story. ... so, dear reader, what happened next? 12 May - the registered letter was sent as suggested. 28 May - the school advised that the Post Office advised that it was [...]
When is it appropriate to take legal action? Depends on many factors. I was asked this in reply to a recent post in this blog - "How To Ask For An Account Payment". The normal answer, of course, is avoid taking legal action until you absolutely have to. Suing a slow paying debtor is normally [...]