collecting unpaid accounts

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collecting unpaid accounts

STILL hasn’t paid? Simple … “up the ante”

When collecting unpaid accounts, the first thing to remember is to Start Early. As soon as a payment is overdue, do something. Once a month is useless, weekly, sometimes even daily, action is needed. You simply have to become Hard To Ignore.

So what to do if you’ve sent a first reminder email AND a second email reminder and your customer STILL hasn’t paid? Simple … “up the ante” (increase the pressure on the debtors to do something, preferably to pay.)

How to do this.
1: Call them on the phone. Confirm they received your emails. Ask about the account. By this stage, if they genuinely intend to pay, they’ll tell you. Just listen. The way they talk to you, the words they use, the pauses, the excuse given, you’ll know if they’re genuine or not.
2: If you can’t get them on the phone and all that you can do is leave a message, then send them a third email reminder but THIS time use someone else’s name as the sender. Someone perceived to be more important in your business. Try this technique and use the suggested wording, it’s extremely effective.

———————————

From: L.Erlott@your-business-email-address
Sent: 28 February 2009 8.44 AM
To: ‘your-debtor@bigpond.net.au’
Subject: FY: name-of-your-business

Dear Sirs,

Please contact me.

Kind Regards,
Lance Erlott
Manager – Accounts Receivable
——————————

From: accounts
Sent: 27 February 2009 10.32 AM
To: ‘L.Erlott@your-business-email-address’
Subject: FY:FY: name-of-your-business

Hi Lance,

Can you help? I’ve sent a couple of reminders to Your Debtor Pty Ltd and tried to get them on the phone but the December invoice is still outstanding.

Thanks,
Gwen Iveer.
Client Liason
——————————

From: accounts
Sent: 20 February 2009 9.35 AM
To: ‘your-debtor@bigpond.net.au’
Subject: FY: name-of-your-business

Dear Sirs,

The amount below was for a December invoice.

Please advise when you hope to be forwarding this balance or
let me know if you have any queries that I can help you with.

Regards,
Gwen Iveer.
Client Liason

——————————

From: accounts

Sent: 10 February 2009 14:39 PM
To: ‘your-debtor@bigpond.net.au’
Subject: name-of-your-business

Dear Sirs,

Invoice for: Your Debtor Pty Ltd
Invoice No: 12345
Amount: $1,200.00

According to our records, the above amount appears to be outstanding.

If payment has been made, thank you.
If it hasn’t, please organise for settlement in the near future.

Please contact me if you have any queries or if I can be of any assistance.

Kind Regards,
Gwen Iveer.
Client Liason

———————————

Note:
* Gwen sent an internal email to Lance Erlott – Accounts Receivable Manager.  (NOTE: she doesn’t really HAVE to send that internal email, but, it’s important that the debtor THINKS it’s been referred upwards!)
* The next day, the day AFTER Gwen’s phone message, Lance sent his email to the debtor which simply says “Please contact me” – no more. No less. No threat.  (Gwen can actually send this email under Lance’s name)
* The debtor might ignore Gwen’s phone message (as he did her emails) but now another “player” is in the game, Lance Erlott. What’s he like?
* Simple to set up – very effective.
* It’s also using “Fear Of The Unknown“, Lance Erlott!

By | 2017-08-24T04:03:48+00:00 July 25th, 2011|wording|0 Comments

About the Author:

Have you ever wondered why a client does business with you and then ignores your invoice like they had no intention of paying it in the first place or they treat you like their own personal line of credit, leaving YOU dangling, waiting months for their payment? Unfortunately this situation is all too common and can even be puzzling for the most experienced business owner. If you’ve ever had to handle outstanding accounts or you are just so over non-payers, then we can help. Real-world skills, solutions, tips & strategies to get more accounts paid on time, and, most importantly, how to maintain customer goodwill while keeping YOUR cash flow in the positive. You will find the blog posts helpful but to get real results, contact us by using any of the forms on this site, by email or by phone. I’ve been involved in the management of accounts for over 30 years, heard every excuse in the book, can spot a non-payer at 20 paces. Finance Companies in the 70s (systematic, tough), professional firms in the 80s (no systems, too gentle) and, since then, just about every other sort of business you can think of. I’ve written books on the topic, spoken all over the place about it and the blog in this website is my way of “giving back”. I hope you find it helpful.

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