Using “time off” to collect overdue accounts

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Using “time off” to collect overdue accounts

I wrote this post on a Thursday, in April. Just before Easter Friday. Holidays were due to start the next day.

Businesses would then be closed until Tuesday of the next week.

We used Time combined with Fear Of The Unknown to get one of our clients overdue accounts paid. (The debt was $6,000 at the time and went back to October – of the previous year. It was almost 6 months overdue at the time.)

A text message was scheduled (we use SMSit) to be sent to the Debtors mobile at 6.20pm on Thursday night. It had my name in the message. The Debtor did not know me.

This is all that it said ….
Hi Jon. I’ve been asked to contact you regarding ABC Pty Ltd.  I will do so on Wednesday next week, at 10.02am. Regards, Michael Todd.

When he read the email, he couldn’t have done anything about it. After all, it was Easter. I didn’t KNOW what’d happen but this was my forecast (an excerpt from my email to the creditor).

* He probably won’t be at work when he gets the message.
* You certainly won’t be! 🙂
* So, he’ll worry about it all weekend being able to do nothing about it to ‘sort it out’ quickly.
— Who is this guy?
— Why didn’t he call?
— Why such an unusual time?
— Are they going to sue me?
* I expect him to contact you on Tuesday. (He knows you and feels he can “get around you” and stall paying. IE: He’s comfortable dealing with you.)
* He’ll make a promise to pay (if he doesn’t pay straight away).
If he doesn’t contact you, then he’s either
1  ignoring the account – again, or
2  didn’t get the message (The SMS website will confirm whether it’s been opened or not.)
then, we will take the next appropriate action.

Pleased to tell you that the debtor sent a remittance advice for the full amount due to the creditor on Wednesday morning at about 9.00am.  ONE hour before the phone call – which I had no intention of making.

THE MORAL – Sometimes doing NOTHING can be very powerful (when applied sensibly).

By | 2020-03-02T01:54:26+00:00 May 19th, 2014|case studies|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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