Tips for Collecting What You Are Owed

Debt management is critical to the success of any company, and you need to have a plan in place in the event that clients are delinquent in paying their invoices. This recent Business Resources article on NFIB.com offers 12 tips to help with debt collection, including:

• Draft a clearly written payment policy to prevent problems, and have clients sign the agreement before work is begun on the project.


• Set up company procedures for collections, and specify whose job it is to follow up with customers and exactly when statements and reminder letters should be mailed and phone calls made.


• Email invoices instead of mailing them to shorten the collection cycle.


• When an account is past due, phone calls and face-to-face meetings are more effective than paper or email reminders.


• Be precise. Get a commitment to a specific amount by a set date.


• Hire a debt collection agency.