When chasing slow debtors, put the words “We will phone you next week to see if we can be of any assistance” in your second or third reminder letter or email and more clients will pay or contact you! That’s simply because debtors who genuinely intend to pay don’t want to called on the phone.
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To explain: If a debtor has just two invoices to pay – same amount and roughly the same date – and both creditors send a second reminder letter but one of them includes those words, the debtor is far more likely to react to the one that tells him if you don’t pay we’ll phone you. Try it, just once. Notice the reaction.
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Another neat little trick is to use this wording in a letter.
I am writing this letter, as I was unable to
speak to you on the phone earlier this week
when I tried to call. We are most concerned
that some customers have not yet paid
their accounts and request that all balances
be fully up to date by {specify day and date}.
speak to you on the phone earlier this week
when I tried to call. We are most concerned
that some customers have not yet paid
their accounts and request that all balances
be fully up to date by {specify day and date}.
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This works well for two reasons.
1: It tells the customer that you’ve already tried to talk to them (whether you really have or have not is not important!)
2: It specifies a “pay by” date.
People normally do not want to talk about an overdue account. They want to save face.
Some good business advice here. I liked the save face story too.
Yes, good advice. But I don’t bill customers they are pay as you go on bookkeeping daily or weekly. If they don’t pay I stop doing their bookkeeping till they do. Tax preparation, no completed returns unless paid at time they pick them up. Saves face no money now work. So far 99% pick up tax returns promptly and pay. Bookkeeping no non payers yet.