payment agreements

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payment agreements

chasing slow debtors often means making a payment arrangement.  Try this to guarantee payment.Did you know that a signed payment arrangement is a new contract? And, if that new contract is not honoured, you can sue and you will win judgement every time?

That means that if the debtor continually defaults on the payment arrangement made (and you’ve finally “had enough”) and decide to sue, then you can sue them on the defaulted arrangement and you will win judgement every time!

 

You cannot lose.

The debtor cannot dispute any of the work done or anything about the service or product you supplied because you’re not suing them about any of those, you’re suing them for not keeping to the new contract – your payment agreement. In other words, they have negated their right to argue about the service or product supplied by signing a new contract – to pay you X dollars every week/month.

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IMPORTANT
* Include a stamped, self-addressed envelope and a copy of the your payment arrangement letter with the original of the letter.
* Put something like this at the bottom of the copy
I, Dave Debtor, agree to the above payment arrangement.
Signed By: ——————dated:
Dave Debtor —————-___ March 2009
* Send it by REGISTERED MAIL.

Some debtors won’t sign and return this letter. But the ones that do intend honouring the arrangement will. And this acts as an idicator about their intent to pay. Their non-compliance to your request could indicate that they’re only “stalling”.

Click here to see some wording that you can use.

By | 2017-09-20T13:01:35+00:00 March 19th, 2009|techniques|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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